Which of the Following Statements Is FALSE

question 73

Multiple Choice

Which of the following statements is FALSE?

• A)Equity holders expect to receive dividends and the firm is legally obligated to pay them.
• B)A firm that fails to make the required interest or principal payments on the debt is in default.
• C)In the extreme case,the debt holders take legal ownership of the firm's assets through a process called bankruptcy.
• D)After a firm defaults,debt holders are given certain rights to the assets of the firm.

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Definitions:

Variable Interval Schedules

Are interval schedules in which the amount of time that must pass before a reward is given can change from one reward period to another.

Fixed Ratio Schedules

Are ratio schedules in which the number of times a behavior must occur before it is rewarded remains constant over time.

Reinforcement Theory

A motivational theory suggesting that behavior is driven by its consequences, with rewards increasing the likelihood of repeating behaviors.

Intrinsic Motivation

The internal drive to perform an activity for its own sake and for the satisfaction it provides, rather than for some external reward.