Which of the Following Is Incorrect in Relation to Debt

question 57

Multiple Choice

Which of the following is incorrect in relation to debt recovery rates?

• A)Macroeconomic factors are found to be significant in explaining recovery rates on defaulted bonds.
• B)Macroeconomic factors are found to be insignificant in explaining recovery rates on defaulted bonds.
• C)Senior securities tend to have higher recovery rates than subordinated securities.
• D)Industrial revenue bonds tend to have higher recovery rates than subordinated securities.

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Definitions:

Intrinsic Motivation

A person’s beliefs about the extent to which an activity can satisfy his or her needs for competence and self-determination

Empowerment

The process of increasing the capacity of individuals or groups to make choices and transform those choices into desired actions and outcomes.

Motivate Another Person

The act of encouraging or inspiring someone to act or behave in a certain way to achieve a goal.

Two-factor Theory

A psychological theory proposed by Herzberg that distinguishes between factors that cause job satisfaction (motivators) and those that cause dissatisfaction (hygiene factors) at work.