For an Owner,the Main Financial Management Emphasis While Transferring a Business

question 58

Multiple Choice

For an owner,the main financial management emphasis while transferring a business to family members must be to:

• A) increase the cash-to-cash cycle to the highest time possible.
• B) increase asset value.
• C) optimize capital structure for profits.
• D) maximize debt.

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Definitions:

Adams's Theory

Refers to the Equity Theory of motivation created by John Stacey Adams, which suggests that employees are motivated or demotivated based on their perception of fairness in the workplace.

Inequity

A state of unfairness or injustice where there is an imbalance or disproportionality in the distribution of resources or opportunities among individuals or groups.

Restoring Equity

The process of ensuring fairness and balance in the distribution of resources and opportunities.

Adams's Theory

Relates to the equity theory of motivation, suggesting that employees are motivated to maintain equity between inputs and outcomes in their job and workplace.