Given a choice,firms will exhaust the cheapest source of external funding first before moving on to the ________ source.
A)more economic
B)most cheap
C)most expensive
D)next cheapest

Question

Quizplus · Accepted Answer

Firms typically prioritize the use of the cheapest sources of external funding available to them and will move to the next cheapest option once the cheapest is exhausted, to minimize financing costs.

Given a Choice,firms Will Exhaust the Cheapest Source of External