The Use of Leverage as a Way to Signal ________

question 53

Multiple Choice

The use of leverage as a way to signal ________ information to investors is known as the signalling theory of debt.

• A)good
• B)bad
• C)random
• D)new
• E)old

---

Definitions:

Federal Law

Laws passed by the national government of a country that are applicable throughout the country.

State Laws

Legislation established by individual states within a country, governing within its own borders and specific to its jurisdiction.

At-Will

An employment arrangement in which either the employer or employee can terminate the relationship at any time, for any reason that is not illegal.

Notice

A formal communication or statement that informs parties about legal obligations, intentions, or changes in circumstances.