Which of the following is a disadvantage of equity capital?
A. You must repay or face the possibility of bankruptcy
B. Your credit standing may be lowered by the use of equity capital
C. You must offer collateral in the form of valuable property
D. You must contend with the investor as a co-owner of the business
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As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.
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Which of the following is a disadvantage of equity capital?
A. You must repay or face the possibili...
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