Matza's Drift Theory Is Highly Consistent with Several of the Ideas

question 5

Multiple Choice

Matza's drift theory is highly consistent with several of the ideas presented by control theorists,including all of the following assumptions EXCEPT:

• A)selfish tendencies are universal
• B)selfish tendencies appear at times when controls are weakest
• C)selfish tendencies are inhibited by socialization and social controls
• D)selfish tendencies appear only during the teenage years

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Definitions:

Dividend Yield

A financial benchmark that illustrates the relation between a company's per annum dividend issuance and its share price.

Required Return

The expectancy of financial gain on an investment, considering its risk profile, set by investors as a benchmark.

Dividend Irrelevance Theory

A theory suggesting that dividend policy has no effect on a company's value or its stock price.

Firm's Value

The total monetary value of a company, typically assessed through metrics like market capitalization, enterprise value, or net asset value.