Which of the Following Statements Is Most Correct

question 39

Multiple Choice

Which of the following statements is most correct?

• A) Under normal conditions, a firm's expected ROE would probably be higher if it financed with short-term rather than with long-term debt, but the use of short-term debt would probably increase the firm's risk.
• B) Conservative firms generally use no short-term debt and thus have zero current liabilities.
• C) A short-term loan can usually be obtained more quickly than a long-term loan, but the cost of short-term debt is likely to be higher than that of long-term debt.
• D) If a firm that can borrow from its bank buys on terms of 2/10, net 30 days, and if it must pay by Day 30 or else be cut off, then we would expect to see zero accounts payable on its balance sheet.
• E) If one of your firm's customers is "stretching" its accounts payable, this may be a nuisance but does not represent a real financial cost to your firm as long as the firm periodically pays off its entire balance.

Identify and differentiate between positive and negative reinforcement and punishment.

Explain the principles and effectiveness of various reinforcement schedules in operant conditioning.

Recognize the concept and examples of latent learning and its significance in behavior.

Describe the process and components of observational learning according to Bandura's model.

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Definitions:

Payments

Transactions by individuals or entities to transfer money in exchange for goods or services.

Overhead Expenses

The ongoing expenses associated with running a business that are not directly tied to the production of goods or services.

Mark-up

An extra charge applied to the base cost of products to accommodate for overheads and earnings, culminating in the final asking price.

Selling Price

The amount of money for which an item or service is sold to the buyer.