Studies Have Found That Firms with Large Investments in Tangible

question 50

Multiple Choice

Studies have found that firms with large investments in tangible assets tend to have:

• A)higher financial distress costs than firms with comparable investments in intangible assets.
• B)zero debt.
• C)higher target debt-equity ratios than firms that primarily invest in intangible assets.
• D)the highest financial distress costs of any firm per dollar of debt.
• E)the same capital structure as firms that specialize in intangible asset investments.

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Definitions:

Bobo Dolls

Inflatable dolls used in a series of experiments by psychologist Albert Bandura to study children's behavior after observing an adult model acting aggressively towards the doll.

Bandura

Albert Bandura is a psychologist known for his work on social learning theory and the concept of self-efficacy, which describes the role of observational learning, imitation, and modeling in personality development.

Continuous Reinforcement

A reinforcement schedule in operant conditioning where a behavior is rewarded every time it is performed.

Negative Reinforcement

A behavioral technique where the removal of an undesirable or unpleasant outcome after the display of a behavior increases the likelihood of the behavior being repeated in the future.