Which Type of Justice Does Equity Theory Apply Most Directly

question 1

Multiple Choice

Which type of justice does Equity theory apply most directly to?

• A)perceptive
• B)distributive
• C)procedural
• D)interactional

Understand the concept of Weighted Average Cost of Capital (WACC) and its components.

Grasp the implications of changes in the capital structure on WACC and firm valuation.

Comprehend the factors influencing the cost of equity and debt in a firm's capital structure.

Understand how different financing sources affect a firm’s overall cost of capital.

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Definitions:

Procedural Fairness

The requirement for legal and administrative decisions to be made following processes that are fair, proper, and established, ensuring individuals are treated justly.

Natural Justice

Legal principles which ensure fair treatment in judicial and administrative decisions, including the right to a fair hearing and the rule against bias.

Fair Treatment

The principle of dealing with others in a way that is right, equitable, and free from bias or favoritism.

Minimum Standards

The lowest acceptable limits set by regulation for various criteria, such as working conditions, product quality, or safety requirements.