Which of the Following Might Be Considered the Most Drastic

question 102

Multiple Choice

Which of the following might be considered the most drastic step in securing funding, often a last resort for a corporation?

• A) Using sales revenue
• B) Equity capital funding
• C) Short-term borrowing from a bank
• D) Debt capital funding
• E) Sale of assets

---

Definitions:

Long-run Cost Curve

A graphical representation showing the minimum cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Hair Dryers

Electrical devices used to blow dry hair by emitting warm air.

Economies of Scope

Cost advantages that arise from a firm or company expanding its product line or markets, exploiting shared resources or technologies.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the cost per unit as output increases.