The Issue of Corporate Capital Structure Has Similarities to College

question 94

Multiple Choice

The issue of corporate capital structure has similarities to college students' financial situations because:

• A) Many students use borrowed funds to finance their education.
• B) Most finance students will ultimately work for a major corporation and will make decisions as to how the firm finances its investment in assets.
• C) using debt to finance one's education is similar to issuing stock to finance investment in a firm's assets
• D) both (a) and (c)

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Definitions:

Judicial Review

The power of courts to assess whether a law or governmental action is consistent with the Constitution and, if not, to declare it invalid.

Federalism

A political system that combines a general government (the federal or national government) with regional governments (states or provinces) in a single political system.

Shared Powers

Constitutional powers that are shared by both the state and federal government, allowing for a balance between centralized and local authority.

Federal Judges

Judges appointed by the president and confirmed by the Senate to serve in the federal court system, including the Supreme Court, Courts of Appeals, and District Courts.