Any Increase in Profit Contribution That a Strategy Generates, Without

question 185

Multiple Choice

Any increase in profit contribution that a strategy generates, without increasing capital invested,

• A) is an impossible task.
• B) increases the firm's return on investment.
• C) reduces shareholder value.
• D) increases the debt to equity ratio.
• E) increases the risk associated with that strategy.

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Definitions:

Partial Reinforcement

A conditioning method where a reward is not administered every time the desired behavior is performed, making the response more resistant to extinction.

Continuous Reinforcement

A method of learning in which every correct response is followed by a reward, facilitating the acquisition of a desired behavior.

Stimulus Control

Stimulus control refers to the modification of behavior through the manipulation of environmental factors that trigger specific responses.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, through which an association is made between a behavior and a consequence for that behavior.