Glenda Is Trying to Decide Between the Use of Debt

question 8

Multiple Choice

Glenda is trying to decide between the use of debt and the use of equity to finance her young business. She should remember that

• A) her return on assets will be less if she uses debt financing.
• B) using other people's money to finance one's business is seldom a good idea.
• C) the lender will have partial control of the business.
• D) debt must be repaid even if the company does not make a profit.

---

Definitions:

Humanistic Psychology

is an approach within psychology that emphasizes individual potential and stresses the importance of growth and self-actualization.

Positive Self-Concept

An individual's perception of themselves in a positive light, encompassing self-esteem, self-worth, and self-image.

Self-Actualization

The accomplishment or realization of personal talents and possibilities, regarded as an essential urge or demand in every person.

Abraham Maslow

A psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.