To Increase Shareholder Value, Managers Must Try to Venture into New

question 44

True/False

To increase shareholder value, managers must try to venture into new markets whether the results are profitable or not.

Determine a company's free cash flow.

Evaluate the impact of capital expenditures on a company's cash flows.

Understand the classification of activities on the statement of cash flows (operating, investing, and financing).

Calculate net cash provided by (used in) investing activities.

---

Definitions:

Reciprocal Determinism

A concept of Albert Bandura's social cognitive theory that suggests individual behavior, environmental factors, and personal cognitive factors, including beliefs, all interact to shape behavior.

External Events

Occurrences happening outside of an individual that can affect mood, behavior, and perceptions.

Internal Factors

Influences that originate within a person, such as beliefs, values, and personal drive.

Generalized Expectancies

Beliefs or assumptions about how general traits or behaviors are likely to be rewarded or punished in various situations.