Return on Equity Will Not Change If the Firm Increases

question 65

True/False

Return on equity will not change if the firm increases its use of debt.

Appreciate the application of behavioral theories to real-world behavior modification.

Understand the implications of reward and punishment anticipation in behavior modification.

Recognize the significance of response rates and reinforcement schedules in shaping behavior.

Identify strategies for fear reduction and the extinction of avoidance learning.

---

Definitions:

Legitimate Power

A type of power that is recognized and accepted by the society or organization in which it operates, often derived from a formal position or role.

Tacit Power

Unspoken, yet understood authority or influence that individuals or groups may hold, often derived from social positions or relationships.

Legal-Rational Authority

Is typical of modern societies. It derives from respect for the law. Laws specify how a person can achieve office. People generally believe laws are rational. If someone achieves office by following laws, people respect his or her authority.

Pierre Elliott Trudeau

A former Prime Minister of Canada known for his charismatic leadership, implementation of the Official Languages Act, and promotion of Canadian unity.