A General Rule for Managers to Follow Is to Set

question 77

Multiple Choice

A general rule for managers to follow is to set the firm's capital structure such that:

• A) the firm's value is minimized.
• B) the firm's value is maximized.
• C) the firm's bondholders are made well off.
• D) the firms suppliers of raw materials are satisfied.
• E) the firms dividend payout is maximized.

---

Definitions:

Sufficient Reinforcement

The adequate or required amount of encouragement or reward necessary to achieve desired behavior.

Skinner Box

A laboratory apparatus used in the experimental analysis of animal behavior, especially for studies of conditioning, named after B.F. Skinner, a psychologist.

Deviant People

Individuals who act, think, or behave in ways that diverge significantly from the norms of their society or culture.

Negative Reinforcers

Stimuli whose removal or avoidance following a behavior increases the likelihood of that behavior occurring again in the future.