A Good Way to Tell Whether Members of a Production

question 133

Multiple Choice

A good way to tell whether members of a production team are satisfied with their jobs is to

• A) find out their salary.
• B) check their individual productivity levels.
• C) count how many days they are absent.
• D) measure their IQs.

---

Definitions:

Capital Structures

The mixture of debt and equity financing a company uses to fund its operations and growth.

Industry Groups

Categories of related businesses that produce or sell similar products or services and share similar market characteristics.

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity that maximizes a company's stock price by balancing the costs and benefits of financing.

Weighted Average Cost of Capital

Weighted Average Cost of Capital (WACC) is a calculation of a company's cost of capital in which each category of capital is proportionately weighted.