Which Statement Best Describes Initial Attraction to a Person

question 88

Multiple Choice

Which statement best describes initial attraction to a person

• A) It is greatly influenced by that person's physical attractiveness. 
• B) It is greatly influenced by perceived intellectual similarity. 
• C) It is more influenced by personality similarity than by physical attractiveness. 
• D) It is minimally influenced by that person's physical attractiveness.

---

Definitions:

Capital Structure

The mix of debt and equity financing a company uses to fund its operations and growth.

M&M Proposition II

Modigliani and Miller's Proposition II states that a company's cost of equity increases as it increases its leverage due to the risk premium on equity.

Debt-Equity Ratio

A financial ratio that measures the relative proportion of shareholders' equity and debt used to finance a company's assets.

Financial Risk

The chance of incurring a loss in capital in an investment or business operation.