If a firm raises funds by recruiting additional owners to invest in the firm

A) the firm's financial capital would increase.
B) the firm's financial capital would decrease.
C) the firm's stock price would decrease.
D) the firm's net worth would decrease.


Answer: A

Economics

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Initially, demand-pull inflation will

A) increase both the price level and increase real GDP. B) shift the aggregate supply curve rightward. C) decrease potential GDP. D) increase the price level and decrease real GDP. E) increase the price level and not change real GDP.

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Technological advances lead to ________

A) a shift of the short run AS curve up B) a shift of the long run AS curve to the left C) an upward movement along the long run AS curve D) all of the above E) none of the above

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Economic rent is broadly defined as

A) a payment received by a landowner. B) a payment for the use of any resource that has a fixed supply. C) the return to owners of farmland. D) the dividend return on a share of stock.

Economics

If input costs remain the same as industry output expands, what would you expect to be the long-run impact of an increase in demand on an industry currently in long-run equilibrium? a. There will be more firms but the price will remain the same. b. There will be fewer firms but the price will remain the same. c. There will be more firms and the price will increase

d. There will be fewer firms and the price will decrease.

Economics