The Pecking Order Theory of Capital Structure Is Derived from

question 45

Multiple Choice

The pecking order theory of capital structure is derived from

• A) expectations theory.
• B) the Modigliani-Miller theory.
• C) liquidity preference theory.
• D) agency theory.

---

Definitions:

Incorporation

The legal process of forming a corporation, which is a type of business entity recognized as separate from its owners.

Shareholder

An individual or entity that owns shares in a corporation, making them a part owner of the company.

Finance

The study and management of money, investments, and other financial instruments, including the processes of raising, allocating, and utilizing funds by individuals, businesses, and governments.

Historically

Referring to events, conditions, or patterns that have occurred in the past.