Which of the Following Represent Resources Accumulated Via Community Relationships

question 41

Multiple Choice

Which of the following represent resources accumulated via community relationships and access to others which are 'traded' for other things?

• A)Latent ties.
• B)Social capital.
• C)Legitimate power.
• D)Network units.
• E)Nodes.

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Definitions:

M&M Proposition II

A theory proposing that the value of a firm is unaffected by its capital structure, assuming no taxes and that investment returns are required to increase with leverage.

Cost of Equity

The rate of return that a company is expected to pay to its shareholders to compensate them for the risk of investing in the equity of the company.

Leverage

The use of various financial instruments or borrowed capital, like debt, to increase the potential return of an investment.

Debt-Equity Ratio

The ratio of a firm's total liabilities to its shareholders' equity, used to assess financial leverage.