Answer: New debt is preferable to new equity
Explanation: In simple words, pecking order theory refers to the corporate finance phenomenon which states that managers of a company finance their company on the basis of three sources and always prefers one over the other.
As per this theory the first preference for the manager is retained earnings, second option should be debt and the last resort should be equity. A manager following pecking order theory focuses on decreasing the risk of financing rather than the cost of capital.
I think the main reason people buy shares of companies is to make money.
Explain:
their idea is to buy low value of things and sell high. for example, if i buy 100 shares of a company stock valued at 25$ each i will have made a total of 2,500$. if in the next few months the shares increase to $50, I can sell them for more, Like $5,000, This is doubling your investment.
Hope that helped
Automobile dealerships usually follow “product distribution franchises”
Product distribution franchises meaning: Distribution Franchise, these product-driven franchises are where the franchisee distributes the parent company products and some related services. The parent company provides the use of its branded trademark, but not typically an entire system for running a business.
re-stocked was the answer, but there could others like re-fined, re-integrated
<span>A company facing a simple environment would not thrive. A simple environment would not pose any competition at all for the employees to step up their game and bring out the best in them. Competition is not part of a simple environment but on a complex level.</span>
