Which One of the Following Is Correct Based on the Static

question 57

Multiple Choice

Which one of the following is correct based on the static theory of capital structure?

• A)A firm receives the greatest benefit from debt financing when its tax rate is relatively low.
• B)A debt-equity ratio of 1 is considered to be the optimal capital structure.
• C)The costs of financial distress decrease the value of a firm.
• D)The more debt a firm assumes, the greater the incentive to acquire even more debt until such time as the firm is financed with 100 percent debt.
• E)At the optimal level of debt a firm also optimizes its tax shield on debt.

Identify the goals and impacts of employee orientation and socialization processes within organizations.

Comprehend various human resource management functions such as training, mentoring, and coaching.

Understand the legal and ethical considerations in employee dismissal and termination processes.

Appreciate the need for work-life balance and how organizations support it.

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Definitions:

S-R Association

Stands for Stimulus-Response Association, which refers to the connection formed between a specific stimulus and a consequent response in behaviorism.

Guthrie

Edwin Ray Guthrie was a behavioral psychologist known for his theory that learning is a direct association between stimulus and response, occurring in a single trial without reinforcement.

Reward Reduction

A decrease in the magnitude or frequency of a rewarding stimulus following a behavior, which can affect the future likelihood of that behavior.

Environmental Stimuli

External factors or changes in the environment that can influence an individual's behavior or physiological responses.