Deterrence Theory Presumes That ______

question 28

Multiple Choice

Deterrence theory presumes that ______.

• A) there is a difference between primary deviance and secondary deviance
• B) people obey the law from a sense of obligation
• C) human beings are at least marginally rational who are responsive to the costs and benefits of their actions
• D) curiosity about the world may evolve from your personal troubles

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Definitions:

Tax-Deductibility

The feature of certain expenses that can be subtracted from gross income to reduce taxable income and lower the tax bill.

Interest Expense

The cost incurred by an entity for borrowed funds; this can include payments on loans, bonds, or lines of credit.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Book Value

The net value of a company's assets minus its liabilities, often used to assess a company's financial health.