Sven Has Just Realized That Before His Daddy Goes to Work

question 27

Multiple Choice

Sven has just realized that before his daddy goes to work in the morning, he first eats breakfast in the kitchen. As a result of this realization, he now goes to the kitchen as soon as he hears his dad get up so that he can be near dad. This behavior best exemplifies

• A) goal-corrected partnership.
• B) undiscriminating social responsiveness.
• C) active proximity-seeking/true attachment.
• D) discriminating social responsiveness.

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Definitions:

Marginal Cost of Capital

The cost of obtaining an additional dollar of new capital, which increases as more capital is raised due to increasing risk and/or decreasing attractiveness to investors.

Investment Opportunity Schedule

A graph or listing that shows the relationship between the rates of return on investment and the amount of investment.

MCC

Marginal Cost of Capital is an economic term representing the cost of obtaining one additional unit of capital.

Financial Risk

The variation in a firm’s financial performance caused by using borrowed money (debt, leverage).