Not All Firms Have the Same Optimal Capital Structure

question 51

Multiple Choice

Not all firms have the same optimal capital structure. Factors that might influence a firm's capital structure include:

• A) the industry in which it operates.
• B) the volatility of its sales and operating income.
• C) the collateral value of its assets.
• D) all of the above

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Definitions:

Equity

Fairness or justice in the way people are treated, particularly regarding the distribution of resources.

Goal Setting

Is the process of setting performance targets.

Task Feedback

The information received by individuals about their performance on a task, intended to guide future efforts.

Self-efficacy

An individual's belief in their own capability to accomplish tasks and achieve goals.