When a Corporation Decides to Issue Long-Term Debt in Order

question 91

Multiple Choice

When a corporation decides to issue long-term debt in order to pay for the acquisition of real assets, it has made a:

• A)Capital budgeting decision.
• B)Financing decision.
• C)Money market decision.
• D)Secondary market decision.

---

Definitions:

False Negative

A test result which incorrectly indicates that a particular condition or attribute is absent.

Contrast Errors

In performance assessment, these are errors made when comparing one individual's performance too closely against others, rather than against objective criteria, leading to exaggerated differences.

Halo Errors

Halo errors occur in performance appraisal when the evaluator's overall impression of an employee, either positive or negative, influences judgments about specific performance traits.

360-degree Appraisal

A comprehensive performance review process involving feedback from a wide range of sources including supervisors, peers, subordinates, and sometimes clients to provide a holistic view of an employee's performance.