A Stimulus Which Is Not Originally Punishing but Which Acquires

question 30

Multiple Choice

A stimulus which is not originally punishing but which acquires punishing power through association with a stimulus that is punishing is called a(n) :

• A)conditioned punisher
• B)warning stimulus
• C)unconditioned punisher
• D)conditioned stimulus

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Definitions:

Tax Shields

Reductions in income tax liability achieved through allowable deductions such as mortgage interest, depreciation, or charitable donations.

Bondholders

Investors who own bonds issued by a corporation or government, essentially lending money to the issuer in exchange for periodic interest payments and the return of principal at maturity.

Bankruptcy Probabilities

Bankruptcy Probabilities represent the likelihood of a company or entity being unable to meet its financial obligations and thus having to declare bankruptcy.

Capital Structure

The mix of debt and equity financing a company uses to fund its operations and growth.