Managers Prefer Funding Investment First with Retained Earnings,second,after the Supply

Managers prefer funding investment first with retained earnings,second,after the supply of retained earnings has been exhausted,with debt,and finally,when it is imprudent for the firm to borrow additional amounts,by issuing outside equity.This is known as the:

A) capital structure substitution theory.
B) pecking order of financing choices.
C) trade-off theory of capital structure.
D) efficient market theory.