If a Firm Changes Their Capital Structure by Waiting Until

question 80

Multiple Choice

If a firm changes their capital structure by waiting until the firm requires additional capital to cover capital budgeting needs and then selling more of the type of claims they wish to increase, they are using which type of capital structure change?

• A) Active
• B) Passive
• C) Separation
• D) Supportive

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Definitions:

Nondirectional Research Hypothesis

An assumption indicating a link between variables, yet lacks details on the direction of their relationship.

Nondirectional Research Hypothesis

A hypothesis that predicts a relationship between variables but does not predict the direction of the relationship.

Directional Research Hypothesis

A hypothesis that specifies the direction of the expected difference or relationship between two variables or conditions.

Directional Research Hypothesis

A hypothesis that specifies the expected direction of the relationship between variables, such as predicting an increase or decrease in one variable associated with changes in another variable.