A Manager Who Has a High Level of Risk Propensity

question 61

Multiple Choice

A manager who has a high level of risk propensity is likely to:

• A) make decisions quickly.
• B) avoid risks.
• C) spend a lot of time evaluating alternatives.
• D) be wary of making a wrong choice.
• E) rely heavily on mathematical analysis.

---

Definitions:

Financing Activities

Transactions and events that affect the equity and long-term liabilities of a company, including issuing shares, repaying loans, and paying dividends.

Cash Dividends

Payments made by a corporation to its shareholders from its profits or reserves, distributed in the form of cash.

Financing Activities

Transactions and business events that involve raising funds to support company operations, investing activities, and shareholder returns, typically through borrowing or issuing equity.

Accounts Payable

The amount a company owes to suppliers or creditors for goods and services purchased on credit, represented as a liability on the balance sheet.