Which One of the Following Is the Primary Determinant of a Firm's

question 96

Multiple Choice

Which one of the following is the primary determinant of a firm's cost of capital?

• A)debt-equity ratio
• B)applicable tax rate
• C)cost of equity
• D)cost of debt
• E)use of the funds

Identify the factors that influence the effectiveness of incentive pay, such as the link between employee actions and company performance.

Comprehend the concept and implementation of a balanced scorecard approach.

Differentiate between various incentive plans such as team awards, standard hour plans, and piecework rates.

Understand the implications and roles of stock options and retention bonuses in employee compensation.

---

Definitions:

Corporate Liability

The legal concept that a corporation can be held responsible for the actions of its employees or agents, subject to laws and regulations governing corporate conduct.

Search Warrant

An official court order authorizing law enforcement agencies to conduct a search of a place and seize evidence.

Fourth Amendment

Part of the United States Constitution that protects individuals against unreasonable searches and seizures by the government, requiring warrants to be judicially sanctioned and supported by probable cause.

Fifth Amendment

A provision in the U.S. Constitution that protects against self-incrimination, ensures due process, and prohibits double jeopardy and eminent domain without just compensation.