A Survey of CFOs Indicated That

question 2

Multiple Choice

A survey of CFOs indicated that

• A)financial flexibility is only a concern for managers of smaller firms; larger, publicly-traded firms are easily able to raise funds as necessary.
• B)having a low interest coverage ratio is very important to them.
• C)they pay close attention to their bond ratings and interest coverage ratios.
• D)targeting an optimal long-term capital structure is more important to them than working capital management issues.

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Definitions:

Neural Excitability

Refers to the ease with which neurons can fire and transmit an electrical impulse.

Cortical Activation

The process of stimulating areas of the cerebral cortex, leading to increased alertness, attention, and readiness for cognitive activities.

Motivated Forgetting

This is a psychological defense mechanism where individuals unconsciously choose to forget disturbing memories, information, or thoughts as a way to cope or manage stress.

Sigmund Freud

The individual from Austria who established psychoanalysis as a treatment approach, focusing on diagnosing and treating mental illnesses through discussions between a therapist and the individual receiving treatment.