What Is Not True About the Operation of the Occupational

question 216

Multiple Choice

What is not true about the operation of the Occupational Safety and Health Act?

• A) OSHA must obtain warrants before inspecting a worksite for evidence of safety violations
• B) compliance with OSHA standards is voluntary
• C) OSHA has authority to issue health standards for industry
• D) fines imposed by OSHA may be in the millions of dollars.
• E) all of the other choices are true

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Definitions:

Financial Leverage

Rephrased: Utilizing debt to finance additional assets, with the aim of increasing returns to equity holders, while also increasing financial risk.

Interest Tax Shield

The decrease in what one owes in income taxes by removing the cost of debt interest from the taxable income figure.

Capital Structure Puzzle

The term refers to the challenge and debate over the optimal composition of a company's debt and equity financing to maximize its value.

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity that maximizes a company’s stock price.