​Jtahcek M's Afrikrmet ,M Baunt Uthfaecyt Ujurests Caa Cnl'et Amnainngu

Multiple Choice

​Jtahcek m's afrikrmet ,m baunt uthfaecyt ujurests caa cnl'et amnainngu fparcotudruec tt htheamt hfaasst beeneonu gqhu ittoe skuececpe usspf uwli ithn the demand. Therefore, Jack needs to find a way to ramp up production­and fast­or his firm will lose to competitors. Which of the following is the best advice for Jack to profitably increase production capacity?

A) ​Fund the purchase of increased production capacity with owners' equity, thereby ensuring control and minimizing risk.
B) ​Fund the purchase of increased production capacity by taking on debt, allowing the firm to have a lower net income through tax deductions and hold on to more cash
C) ​Fund the purchase of increased production capacity by selling stock. This is the best way to ensure that shareholder value is maximized by building a strong corporate identity
D) ​Fund the purchase of increased production capacity by selling unused assets. This will purge the company of the fat it needs to shed in order to remain competitive