Match the Following Numbered Items with the Most Correct Response

question 57

Multiple Choice

Match the following numbered items with the most correct response letter.
A response may be used once, more than once, or not at all.
-Annual salary increases

• A)Merit pay
• B)Motivation factor
• C)Hygiene factor
• D)Incentive pay
• E)Punishment

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Definitions:

Capital

Refers to the financial resources that businesses use to fund their operations and growth.

Firm Value

The total worth of a company, determined by factors like its assets, earnings, and market perception.

Financial Leverage

Employing borrowed capital to enhance the potential profit from an investment, which magnifies both possible rewards and risks.

MM

MM, short for Modigliani and Miller, refers to a foundational theory in finance concerning the capital structure of companies and its impact on market value.