Seth, a Senior Manager, Attends a Board Meeting in Which

question 2

Multiple Choice

Seth, a senior manager, attends a board meeting in which the CEO urges each manager to improve profitability within his or her division. Which of the following reflects an effective management of diversity that Seth could use to help improve profitability?

• A)retaining only low-paid employees
• B)hiring more Asian women
• C)retaining valued employees
• D)giving preference to Hispanics

Comprehend the Modigliani and Miller Propositions regarding capital structure in a no-tax and tax environment.

Identify the key determinants of business risk and its relationship to the firm's financial policies.

Distinguish between liquidation and reorganization in the context of bankruptcy.

Explain the concept of the weighted average cost of capital (WACC) and its minimization as a goal for the optimal capital structure.

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Definitions:

Assumptive Close

A selling strategy where the salesperson proceeds as if the customer has made the decision to buy, concluding the transaction under this presumption.

Continuous-yes

A sales technique designed to get the customer to agree to smaller points or decisions continuously, leading to a higher likelihood of agreeing to the final ask.

Minor-points

Less significant or secondary details in a conversation, presentation, or document.

Exit Technique

A technique used by professional salespeople to keep the door open for future interactions with the prospect, in the event of not being granted the sale.