All of the Following Are Benefits for a Company to Raising

question 43

Multiple Choice

All of the following are benefits for a company to raising its debt levels EXCEPT

• A) deterrent to takeover by other firms.
• B) improvement in productivity.
• C) improvement in cash flows.
• D) force management to focus on core businesses.
• E) improvement in strategic options.

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Definitions:

Internal Locus of Control

Internal Locus of Control is a psychological concept referring to individuals who believe they can control their life, attributing success to their own efforts and abilities rather than external factors.

Decremental

Characterized by a gradual decrease in size, strength, or value over time.

Incidental

Occurring alongside or as a minor accompaniment to something else, not central or primary.

Need for Achievement

A psychological drive that fosters the pursuit of accomplishing difficult tasks and meeting high standards of success.