In Contrast to Managers' Desires, Shareholders Usually Prefer That Free

question 100

Multiple Choice

In contrast to managers' desires, shareholders usually prefer that free cash flows be:

• A) used to diversify the firm.
• B) returned to them as dividends.
• C) used to reduce corporate debt.
• D) re-invested in additional corporate assets.

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Definitions:

Consciousness

The quality or state of being aware of an external object or something within oneself, regarded as a defining aspect of the human experience.

EEG

A test that detects electrical activity in the brain using small, flat metal discs attached to the scalp.

Prefrontal Cortex

refers to the front part of the frontal lobe of the brain, which is involved in complex cognitive behavior, personality expression, decision making, and moderating social behavior.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions (such as fear and pleasure) and drives (such as those for food and sex).