Corporations in the U.S.tend To

question 7

Multiple Choice

Corporations in the U.S.tend to:

• A)minimize taxes.
• B)underutilize debt.
• C)rely less on equity financing than they should.
• D)have relatively similar debt-equity ratios across industry lines.
• E)rely more heavily on debt than on equity as the major source of financing.

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Definitions:

Nominal Scale

A measurement scale used in classifications that involve categorizing data without implying any order or numerical difference between them.

Ratio Scale

A quantitative scale where there is a true zero point and the intervals between different values are meaningful, allowing for the comparison of absolute magnitudes of the numbers.

Independent Variables

Variables in an experiment or model that are manipulated or selected by the researcher to determine their effect on dependent variables.

Quantitative Data

Information that can be measured and written down with numbers.