The Expectancy Model Is Most Closely Aligned with the Idea

question 5

Multiple Choice

The expectancy model is most closely aligned with the idea that:

• A)ability is inherited.
• B)people who don't have developmental needs met as children are more likely to be poor.
• C)people without social capital are more likely to be poor.
• D)all of the above.

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Definitions:

Transaction Costs

Expenses incurred when buying or selling securities, including commissions, exchange fees, and taxes that can affect the profitability of investments.

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income.

Bankruptcy Costs

Expenses and financial losses associated with undergoing bankruptcy, including legal fees, asset liquidation costs, and potential loss of business.

Optimal Capital Structure

The best mix of debt, equity, and other financial instruments that maximizes a company's market value while minimizing its cost of capital.