Why is plowback the overwhelming favorite among choices of sources of funds for financing corporate investment?
Plowback is usually less risky to management. It does not require prior scrutiny by the SEC nor does it depend on the availability of customers. The alternative sources, stock and bond issues, involve expensive and lengthy processes.
You might also like to view...
In order to correct the problems associated with external costs,
A) the signals given to the economy must change so that decision-makers will take into account all the costs of their actions. B) the government must take over production of industries that are responsible for most of the pollution. C) standards must be established that make it illegal to pollute. D) the prices of all goods must be raised so people will consume less of the world's resources.
Which of the following is not a reason for international specialization?
a. some countries have educated, trained workers, while other countries have unskilled workers b. tastes and preferences tend to be different in different countries c. economies of scale can allow larger, specialized producers to operate at lower average cost d. mineral resources are often concentrated in particular countries e. the world price of a good is determined by the world supply and demand for it