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All of the following are the basic firm characteristics that affect how a business is financed except for which one?

1) Ownership structure
2) Profitability
3) Industry type
4) Marketing strategy

User EdNdee
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Final answer:

The basic firm characteristics affecting business financing are ownership structure, profitability, and industry type. Marketing strategy is an important operational aspect but not a direct factor in determining a business's financial structure.

Step-by-step explanation:

The basic firm characteristics that affect how a business is financed include ownership structure, profitability, and industry type. These factors are essential as they play a significant role in determining the level of financial risk and the types of financing that are most suitable for a business. For example, the ownership structure affects decisions regarding the distribution of profits and the authority to make financial decisions; profitability impacts the ability to finance operations internally; and industry type can influence the level of competition and the stability of cash flows. However, marketing strategy, while important for the success and operations of a business, is not a basic characteristic that directly affects how a business is financed.

User Robertokl
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