To Help Avoid the Thin Capitalization Problem, It Is Advisable

question 95

True/False

To help avoid the thin capitalization problem, it is advisable to make the repayment of the debt contingent upon the corporation's earnings.

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Definitions:

Attraction-Selection-Attrition Theory

A theory that suggests organizations develop unique cultures by attracting, selecting, and retaining individuals whose personalities fit well with the current organizational culture.

Organizational Culture

Is the set of shared attitudes, values, goals, and practices that characterizes an institution or organization.

Ethical Conduct

Adhering to a set of moral principles or values in decision-making and actions.

Adaptive Cultures

Organizational cultures that are flexible and able to adjust quickly to changes in the external environment, promoting innovation and learning.