The "Capital Structure" of the Firm Consists of Long-Term Debt

question 52

True/False

The "capital structure" of the firm consists of long-term debt and equity.

---

Definitions:

Outcomes-To-Inputs Ratio

A principle in equity theory that compares the rewards (outcomes) one receives from a job relative to the effort (inputs) one has invested.

Sensitives

Individuals or entities that are highly responsive or susceptible to external stimuli or changes in their environment.

Entitleds

Individuals who believe they deserve special treatment or privileges, regardless of their actual accomplishments or contributions.

Equity

The concept of fairness or justice in the distribution of resources or treatment of individuals.