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
You might also like to view...
The coordination problem accompanying expansionary fiscal policy refers to
a. the tendency of increases in government expenditures to expand private sector output by an even larger amount. b. the possibility that demand stimulus programs will direct resources toward unproductive projects and areas of full employment. c. the possibility that borrowing to finance current spending will lead to lower future interest rates. d. the reluctance of Congress to approve increases in government spending during a recession.
All other things remaining the same, a large increase in the net number of Mexican immigrant workers in the United States from Mexico causes:
a. U.S. GNP to be greater than the U.S. GDP. b. U.S. GNP to be less than the U.S. GDP. c. U.S. gross private domestic investment to rise. d. U.S. GNP to be greater than the U.S. GDP because U.S. gross private domestic investment rises