Which of the Following Statements Is FALSE

question 102

Multiple Choice

Which of the following statements is FALSE?

• A)The optimal level of debt D*,balances the costs and benefits of leverage.
• B)As the debt level increases,the firm benefits from the interest tax shield (which has present value τ*D).
• C)If the debt level is too large firm value is reduced due to the loss of tax benefits (when interest exceeds EBIT),financial distress costs,and the agency costs of leverage.
• D)As the debt level increases,the firm faces worse incentives for management,which increase wasteful investment and perks.

Understand the core job characteristics and how they affect employee motivation and job design.

Determine the effectiveness of job enrichment strategies and their impact on employee performance and satisfaction.

Analyze the role of compensation and rewards in job design and performance appraisals.

Assess the impact of job design approaches like simplification, enlargement, enrichment, and rotation on workers and organizational efficiency.

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Definitions:

American Citizenship

The status of being a citizen of the United States, entailing certain rights, duties, and privileges as outlined by the U.S. Constitution and laws.

Chief Joseph

A leader of the Nez Perce tribe who conducted a remarkable retreat in an attempt to lead his people to Canada in 1877 to escape conflicts with the U.S. government.

Wounded Knee Massacre

Last incident of the Indian Wars; it took place in 1890 in the Dakota Territory, where the U.S. Cavalry killed over 200 Sioux men, women, and children.

Historical Significance

The importance attributed to an event, object, or figure in history based on its impact or consequences.