We May Be More Reliant on Schematic Processing to Make

question 24

Multiple Choice

We may be more reliant on schematic processing to make a quick decision or form a quick impression when:

• A) we are under performance pressure, decreased anxiety, and concentrating.
• B) we are under minor levels of anxiety, communicating something highly technical, and the costs of being wrong are high.
• C) the costs of being wrong are high, but there is no underlying schema to use during processing.
• D) we are under performance pressure, increased levels of anxiety or we are distracted.

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Definitions:

M&M Proposition I

A theory stating that the value of a leveraged firm is the same as the value of an unleveraged firm provided there are no taxes, bankruptcy costs, and asymmetric information.

Debt-Ratio

is a financial metric that compares a company's total debt to its total assets, showing how much of the company's assets are financed by debt.

Capital Structure

Refers to how a firm finances its overall activities and growth through different sources of funds, such as debt and equity.