Which of the Following Is NOT a Reason Why a Firm

question 34

Multiple Choice

Which of the following is NOT a reason why a firm would choose to follow an aggressive financing policy?

• A) to reduce sensitivity to the firm's credit quality
• B) to reduce agency costs
• C) to take advantage of lower interest rates
• D) to reduce exposure to funding risk

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Definitions:

Narcolepsy

A chronic sleep disorder with overwhelming daytime drowsiness and sudden attacks of sleep.

MMPI

The Minnesota Multiphasic Personality Inventory, a psychological test that assesses personality traits and psychopathology.

Stanford-Binet

An individually administered intelligence test that was revised from the original Binet-Simon scale for assessing human intelligence.

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition, a widely used tool for measuring adult intelligence.