When Can Accountability Improve Decision Making? When Can It Harm

question 58

Essay

When can accountability improve decision making? When can it harm decision making?

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Definitions:

Unsystematic Risk

A risk that affects, at most, a small number of assets. Also called unique or asset-specific risks.

Required Return

The expected gain or loss from an investment over a specified period, including both income and changes in asset value.

Capital Structure

The mixture of debt and equity financing a company uses to fund its operations and grow.

Debt-equity Ratio

A measure used to assess a company's financial leverage, calculated by dividing its total liabilities by its shareholder equity.