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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

Why can firms not just use their own profits for financial capital, with no need for outside investors?

To determine

The reasons for firms resorting to outside investors for capital rather than only resorting to their own profits for financial capital are to be determined.

Explanation

Firms cannot just use their own profits for financial capital, with no need for outside investors because firms might not be able to achieve their desired level of profits without allowing shareholders to invest...

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