Which of the Following Do Corporate Executives Use to Form

question 39

Multiple Choice

Which of the following do corporate executives use to form an image of a specific organization?

• A)quality of the firm's products
• B)advertisements released by the firm
• C)economic performance indicators
• D)knowing an employee of the firm

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Definitions:

Financial Leverage

The extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure. If a high percentage of a firm’s capital structure is in the form of debt and preferred stock, then the firm is said to have a high degree of financial leverage.

Tax Effects

The impact of taxation on an individual's or company's financial decisions or situations, especially regarding how investments and financial strategies are structured.

Liquidity Analysis

An examination of a company's ability to meet its short-term obligations with its current assets.

Cash Budget

A schedule showing cash flows (receipts, disbursements, and cash balances) for a firm over a specified period.