Which of the Following Statements Is True

question 37

Multiple Choice

Which of the following statements is true?

• A) The use of debt may lead to financial distress and bankruptcy,thus firms that sell expensive,durable products that may have warranties and ongoing service requirements tend to use less debt.
• B) The use of debt may lead to financial distress and bankruptcy,thus firms that sell expensive,durable products that may have warranties and ongoing service requirements tend to use more debt.
• C) Companies with a large proportion of tangible assets should be more willing to use debt than firms with mostly intangible assets.
• D) Companies with a large proportion of tangible assets should be less willing to use debt than firms with mostly intangible assets.
• E) Both (a)and (c)

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Definitions:

Charismatic Leadership

A style of leadership where the leader possesses exceptional charm and persuasiveness that inspire and motivate followers towards a vision.

Personal Abilities

The skills, talents, and competencies that an individual possesses, which contribute to their performance and achievements.

Profound Effects

Deep or significant impacts that alter the state or course of something.

Transformational Leaders

Leaders who inspire and motivate their followers to exceed their own self-interests for the good of the organization and to achieve extraordinary outcomes.