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To Say That the Investing Decision and Financing Decision of a Firm

Question 3

Multiple Choice

To say that the investing decision and financing decision of a firm are separable is to say ________.


A) that firms first select what products or services they will produce and then select how best to finance these products or services
B) that firms first select how best to finance products or services and then select what products or services they will produce
C) that firms first select what services they want and then what products they will produce
D) that firms first select what products they will produce and then what services they want

Correct Answer:

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