How Managers Choose to Finance the Business Does Not Affect

question 71

True/False

How managers choose to finance the business does not affect the rate of return to shareholders because the rate of return is based on how the company uses the assets it has,not whether or not they paid for the assets with debt or equity.

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision; often related to independence and self-determination in various contexts.

Distressed

Experiencing anxiety, sorrow, or pain; in a state of great trouble or suffering.

Misinterpret

To understand or interpret incorrectly, leading to a deviation from the intended meaning or message.

Neutral Behavior

Actions or responses that are neither particularly positive nor negative, often indicating a state of impartiality.