A Factory That Relies on Highly Technical Machinery May Choose

question 8

Multiple Choice

A factory that relies on highly technical machinery may choose to reduce its overall leverage position by

• A) selling its machinery.
• B) increasing its accounts receivable.
• C) utilizing a higher level of equity.
• D) decreasing their variable costs per unit.

---

Definitions:

Displacement

The transfer of emotions about one person or situation to another person or situation.

Repression

To force painful ideas or impulses into the subconscious.

Intellectualization

To employ reasoning to avoid confrontations or stressful situations.

Physical Boundaries

The demarcation of personal space and physical limits respected between individuals to ensure privacy and comfort.