The Performance Excellence Award Criteria Are Based on Components of the Malcolm

question 72

True/False

The Performance Excellence Award criteria are based on components of the Malcolm Baldrige National Quality Award,and are geared toward China's unique business environment.

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Definitions:

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.

Modigliani And Miller Model

A financial theory proposing that the market value of a company is determined by its earning power and the risk of its underlying assets, and is independent of its capital structure.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity used to finance its overall operations and growth.