A Firm Performs Capital Restructuring in Order to ____

question 38

Multiple Choice

A firm performs capital restructuring in order to ____.

• A)decrease its risk by adding more leverage
• B)increase its risk by increasing equity
• C)get to an optimal capital structure
• D)increase the return on equity by eliminating all debt

---

Definitions:

The Id

According to Freud, is the part of the self that demands immediate gratification.

Societal Rules

Norms, guidelines, and laws established by a society to regulate behavior and maintain order among its members.

Singular Sense

The unique or individual meaning or perspective of a term or concept.

The Ego

According to Freud, is a psychological mechanism that balances the conflicting needs of the pleasure-seeking id and the restraining superego.