The Policy of Changing the Capital Structure Gradually Over Time

question 100

Multiple Choice

The policy of changing the capital structure gradually over time by funding new capital projects disproportionately with the type of capital you want to increase in the capital structure is referred to as:

• A) separation principle.
• B) overinvestment problem.
• C) passive capital structure management.
• D) active capital structure management.

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Definitions:

Human Culture

The shared practices, values, norms, ideas, and artifacts that characterize groups of people, transmitted over time.

Shared Values

Beliefs or standards held in common by a group or society, forming a basis for collective action and identity.

ABC Triad

Affect (how people feel inside), Behavior (what people do), Cognition (what people think about)

Affect

The automatic response that something is good (positive affect) or bad (negative affect)