Rosella Is Financial Manager Who Is Comparing the Effects of Debt

question 237

Short Answer

Rosella is financial manager who is comparing the effects of debt and equity financing. She finds that
debt financing affects management control, whereas equity financing does not.
debt financing makes a regular claim on income, whereas equity financing does not.
debt financing involves no fixed deadlines, whereas equity financing does.
debt financing does not affect management's flexibility, whereas equity financing does.
neither debt financing nor equity financing is tax deductible.

---

Definitions:

Partial Reinforcer

A type of reinforcement strategy where a reward is given only some of the time after the desired behavior is exhibited.

Primary Reinforcer

A naturally reinforcing stimulus like food or water, which does not require learning to become pleasurable or desirable.

Fixed-Interval

A schedule of reinforcement where rewards are provided after a specific and constant period of time has passed.

Variable-Interval

A reinforcement schedule where a reward is given after a random period has elapsed following a response.