List and Define the Three Forces That Influence the Appropriateness

question 49

Essay

List and define the three forces that influence the appropriateness of subordinates participating in decision making (according to Tannenbaum and Schmidt.)

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Definitions:

M&M Theory

Modigliani and Miller's theory positing that in an ideal market, a company's value is unaffected by how it is financed, whether through debt or equity.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which funds its overall operations and growth.

Total Cash Flows

The total sum of cash and cash-equivalents moving into and out of a company.

Capital Structure

The particular combination of debt and equity used by a firm to finance its overall operations and growth.