The Pecking-Order Theory of Capital Structure States That Firms Prefer

question 83

True/False

The pecking-order theory of capital structure states that firms prefer internal financing to avoid sending out adverse signals that may lower the stock price.

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Definitions:

Ethics

Principals that define right and wrong behavior in conducting one’s personal and professional life.

Workforce Diversity

Describes differences among workers in gender, race, age, ethnic culture, able‐bodiedness, religious affiliation, and sexual orientation.

Ethical Dilemmas

Situations in which a choice must be made between two options, neither of which resolves the situation in an ethically acceptable manner.

Conflicts Of Interest

Situations in which a person's personal interests could potentially interfere with their professional duties or responsibilities.