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Which of the Following Is the Best Example of a Proscriptive

question 103

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Which of the following is the best example of a proscriptive norm?


Definitions:

Debt-equity Ratio

An indicator of a business's debt leverage, computed by dividing the sum of its liabilities by the equity owned by its stockholders.

Financial Planning

The process of estimating the capital required and determining its competition; it is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Fixed Percentage

A predetermined, unchanging fraction or rate used in various financial contexts, such as a fixed-rate mortgage.

External Financing

Funds a company seeks from outside sources, such as loans, investor equity, or bonds, to finance its activities.

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