What Motivation Is Provided for Managers Not to Follow the Relaxed

question 39

Multiple Choice

What motivation is provided for managers not to follow the relaxed strategy of long- versus short-term financing?

• A) Transaction costs are required to continually obtain financing.
• B) Short-term investment income is often unattractive.
• C) Investment opportunities must frequently be ignored.
• D) Long-term financing has burdensome tax consequences.

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Definitions:

IDEO

A global design and innovation company that creates positive impact through design.

Design-Thinking Process

A solution-oriented approach to problem-solving that involves empathy, ideation, prototyping, and testing.

Tim Brown

is known for his contributions to design thinking and innovation, notably as the CEO and president of the design firm IDEO.

Significance

The quality of being worthy of attention; importance, or the degree to which something is related or useful to what is happening or being talked about.