Pecking order is a hierarchy of financing beginning with retained earnings, followed by debt financing, and finally external equity financing

Indicate whether the statement is true or false

TRUE

Business

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You are interested in examining the factors that influence the amount of stock a person owns. As explanatory variables, you include both the person's income and also the amount of equity they have in their house

Which of the following problems would most likely affect your model?A) autocorrelation B) multicollinearity C) specification bias D) heteroscedasticity

Business

Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an example of

A) false advertising. B) implied falsity. C) omission lying. D) noise. E) surrogate lying.

Business