Even If Two Firms Operate in the Same Industry, They

question 68

True/False

Even if two firms operate in the same industry, they may prefer different choices of debt-equity ratios.

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Definitions:

Self-interested Politics

Actions within an organization where individuals or groups prioritize their own interests over the collective good.

Ambiguous Outcomes

Results or effects of actions that are not clearly defined or can be interpreted in multiple ways.

Power Networks

Structures within an organization or society where power is distributed and exchanged among individuals or groups.

Central Authority

A governing body or organization that holds the primary power within a political, social, or administrative structure.