The sale of bonds
a. and stocks to raise money is called debt finance.
b. and stocks to raise money is called equity finance.
c. to raise money is called debt finance, while the sale of stocks to raise funds is called equity finance.
d. to raise money is called equity finance, while the sale of stocks to raise funds is called debt finance.
c
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Marginal cost is defined by the slope of the total revenue curve.
Answer the following statement true (T) or false (F)
Electric power utility companies use various fuel sources (e.g., coal, natural gas, nuclear) to generate electricity for their customers
What happens to the demand for natural gas used to generate electricity as we move from a short-run planning horizon to a long-run planning horizon? Why? A) Demand becomes more inelastic over time because the other fuel sources become more scarce, so there are fewer options available for electric power utilities in the long run. B) Demand becomes more inelastic over time because all of the power generation plants tend to choose the same technology, which makes the industry less responsive to prices in the long run. C) Demand becomes more elastic over time because the electric plant's technology becomes obsolete, and the power company has less flexibility to adjust to changes. D) Demand becomes more elastic over time because the power companies have more options available and can adopt new generating technologies or substitutes for natural gas over the long run.
The gains from trade within a price system is
A. consumer surplus less producer surplus. B. consumer surplus multiplied by producer surplus. C. consumer surplus divided by producer surplus. D. the sum of consumer surplus and producer surplus.
The new GATS and TRIPS are separate agreements negotiated within the WTO framework as part of the Uruguay Round that apply to
A) services and transportation. B) agriculture and textiles. C) services and intellectual property. D) textiles and transportation.