The Greater the Numerical Value of the Debt Ratio, the Riskier

question 9

True/False

The greater the numerical value of the debt ratio, the riskier the firm.

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Definitions:

Expectancy Theory

A motivational theory suggesting that individual motivation to perform is influenced by the expectation that effort will lead to performance and performance to desired rewards.

Need For Affiliation

A psychological drive that motivates individuals to seek social connections, acceptance, and relationships with others.

Adams' Theory

Refers to Equity Theory, proposed by J. Stacy Adams, which suggests that individuals are motivated by fairness in their work relationships and will adjust their input to maintain equity.

Restoring Equity

The process of attempting to balance perceived disparities in fairness or distribution of resources within social or organizational contexts.