Creditors of a Business Are More Concerned with the Future

question 18

True/False

Creditors of a business are more concerned with the future cash flows of a business than the future return on equity.

---

Definitions:

Experimental Control

A property of research such that the causes of different behaviors or other phenomena can be isolated and tested. Typically, this involves manipulating independent variables and holding constant all factors but the one(s) of interest.

Naturalistic Observation

A research method involving observing subjects in their natural environment without interference.

Ecological Validity

The extent to which the findings of research studies can be generalized to real-life settings.

Reinforcement

In behavioral psychology, a consequence applied that strengthens the likelihood of the behavior being repeated.