When External Equity Is Used

question 33

Multiple Choice

When external equity is used

• A) part of the firm's ownership is being sold.
• B) interest rates are a critical obligation.
• C) the firm is stronger because control is diffused.
• D) shareholders can add management strength to the firm.

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Definitions:

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization.

Return on Investment

A financial metric that measures the profitability of an investment by dividing the gain from the investment by its cost.

Productivity

A measure of efficiency that quantifies the amount of goods and services produced per unit of labor, capital, or other resources.

Strategic HRM

Interrelated philosophies, policies, and practices that facilitate the attainment of organizational strategy.