Kelly Is a Ninth Grader with Above-Average Abilities

question 60

Essay

Kelly is a ninth grader with above-average abilities.He earns "Bs" in all of his subjects,except for biology,which he barely manages to pass.As his biology teacher,you have tried to help him many times,but you have observed no real progress.Kelly tells you that he has difficulty doing his homework because of anxieties and basic "resistance" to the subject.He simply doesn't know how to get started and stares at the question until he gives up and puts the homework assignment away.
-Explain why (or why not)such strategies as token reinforcement and contingency contracting might help Kelly's situation.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Bankruptcy

A legal process for individuals or businesses unable to meet their outstanding debts, allowing them to negotiate for partial or complete relief.

Financial Distress

A situation where a company struggles to meet or has difficulty in paying off its financial obligations to its creditors.

M&M I

The Modigliani-Miller Theorem I, which suggests that in the absence of taxes, bankruptcy costs, and asymmetric information, and in an efficient market, the value of a firm is unaffected by its capital structure.