Which of the Following Sources of Funds Would Be the Last

question 212

Multiple Choice

Which of the following sources of funds would be the last resort for a corporation?

• A) Sales revenues
• B) Common stock
• C) Preferred stock
• D) Debt capital
• E) The sale of assets

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Definitions:

Market Value

The current market valuation at which services or assets are purchasable or sellable.

Book Value

The net value of a company's assets minus its liabilities, often used to assess if a company's stock is under- or overvalued.

Note Payable

An obligation in writing that promises to pay a specified sum of money at a determined future date or on demand.

Capital Balances

The amount of money that owners have invested in a company plus any retained earnings or losses.