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MGMT 200 Exam 3| 170 QUESTIONS (WITH ANSWERS)| Purdue University

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MGMT 200 Exam 3| 170 QUESTIONS (WITH ANSWERS)| Purdue University
Question 1: mixture of liabilities and stockholders' equity a
business uses
CORRECT ANSWER: capital structure
Question 2: arranging funding by borrowing money
CORRECT ANSWER: debt financing
Question 3: obtaining investment from stockholders
CORRECT ANSWER: equity financing
Question 4: Cost of Financing
-Debt: interest expense (tax-deductible)
-Equity: dividends (not tax-deductible)
CORRECT ANSWER: Debt: interest expense (tax-deductible)
Equity: dividends (not tax-deductible)
Question 5: Examples of debt
CORRECT ANSWER: notes, leases, and bonds 

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