Payments to Suppliers of Equity

question 55

Multiple Choice

Payments to suppliers of equity:

• A)have the highest payment priority
• B)are a tax deductible expense for the firm
• C)are a binding commitment to pay a specified amount
• D)represent a lower cost of funds than debt
• E)are more risky than payments to debt holders.

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Definitions:

Aversive Stimulus

Aversive Stimulus is an unpleasant or painful stimulus used to induce changes in behavior through aversion therapy.

Operant Response

A behavior that is modified by its consequences, through reinforcements or punishments, in operant conditioning.

Aversive Stimuli

An unpleasant or harmful object, event, or situation that is avoided or intended to be avoided by an organism or individual.

Electric Shock

A sudden discharge of electricity through a part of the body, which can be used therapeutically or may occur accidentally.