For large firms economists have found that
A)internal funds are a cheaper source of funds than are external funds.
B)external funds are a cheaper source of funds than are internal funds.
C)internal and external funds cost firms about the same.
D)direct loans from the federal government are the largest source of funds.

Question

Quizplus · Accepted Answer

Economists have found that for large firms, internal funds are a cheaper source of funds than external funds. This is because external funds come with additional costs such as interest payments and fees, while internal funds do not incur these costs. Additionally, large firms may have more resources available internally to fund their projects and investments.

For Large Firms Economists Have Found That