The modigliani and miller (mm) articles implicitly assumed that bankruptcy did not exist. that led to the development of the "trade-off" model, where the firm's value first rises with the use of debt due to the tax shelter of debt, but later falls as more debt is added because the potential costs of bankruptcy begin to more than offset the tax shelter benefits. under the trade-off theory, an optimal capital structure exists.
answer; /// i believe that the correct answer is (c)///// ppc..pay per check first good luck
a is not usually thought of as an economic activity, although it could lead to one. good contacts are never to be dismissed. i'd say a is not the answer.
b with decorations. no money or services have exchanged hands. b is not the answer.
d picking up a relative at the airport. generally d is not the answer. we don't charge our relatives for services given (although if it kept them away, maybe that wouldn't be such a bad thing).
c the key word is selling. money for products. this is true economics. here's your answer.