One Factor That Influences the Choice Between Debt and Equity

question 110

Multiple Choice

One factor that influences the choice between debt and equity is the

• A) state of the economy.
• B) risk of nationalization.
• C) degree of control the owners hope to retain.
• D) state of the owners' estate plan.

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driving individuals to act and achieve.

Theory A And Theory B

An approach in management theory, generally contrasting in nature, where Theory A focuses on authoritarian management and Theory B emphasizes participative management.

Cafeteria Plan

A benefit plan offered by employers that allows employees to choose from a variety of pre-tax benefit options, such as health insurance and retirement plans.

Outsourcing

The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them.