Which of the Following Is More Likely for a Firm

question 83

Multiple Choice

Which of the following is more likely for a firm practicing the "relaxed" strategy of long- versus short-term borrowing at the height of sales demand?

• A)it will borrow heavily on a short-term basis
• B)it will invest heavily in marketable securities
• C)it will borrow heavily on a long-term basis
• D)long-term financing will approximate capital requirements

---

Definitions:

Disinhibition

The reduction of inhibition leading to an increase in spontaneous behavior, often resulting from reduced social or psychological restraint.

Aggressive Behavior

Behavior aimed at causing harm or pain to another being, motivated by hostility, anger, or a desire to dominate.

Inhibition

Refers to the psychological process through which certain behaviors or responses are suppressed.

Respondent Behavior

A behavioral process (also known as the conditioned response) that occurs in reaction to a specific stimulus without conscious intention.