What Motivation Is Provided for Managers Not to Follow the Relaxed

question 112

Multiple Choice

What motivation is provided for managers not to follow the relaxed strategy of long- versus short-term financing?

• A)transaction costs are required to continually obtain financing
• B)short-term investment income is often unattractive
• C)investment opportunities must frequently be ignored
• D)long-term financing has burdensome tax consequences

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Definitions:

Resilience

The ability of a person to adjust to or recover quickly from misfortune or change, showing mental toughness and adaptability.

Adversity

A state of hardship, difficulty, or misfortune that one encounters in life, which can challenge their resilience and coping mechanisms.

Middle Childhood

A developmental stage that covers the period from around 6 to 12 years of age, characterized by significant cognitive, emotional, and social development.

Shared Activities

Activities that are done together with others, fostering social interactions and cooperation.