Since Lenders Are Generally Reluctant to Make Loans to a Firm

question 78

True/False

Since lenders are generally reluctant to make loans to a firm to pay dividends, the firm's ability to pay cash dividends is generally constrained by the amount of excess cash available.

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Definitions:

Law of Immediate Reinforcement

A principle stating that a behavior is more likely to be repeated if it is followed immediately by a positive reinforcement.

Contingent Reinforcement

A behavioral strategy that delivers rewards or consequences based on the occurrence of specific behaviors, aiming to modify those behaviors.

Positive Reinforcement

A psychological concept involving the addition of a rewarding stimulus following a desired behavior to increase the likelihood of its recurrence.

Punishment

Discourages a behaviour by making an unpleasant consequence contingent on its occurrence.