To Reduce Agency Costs, Issuing Debt Instead of Equity Provides

question 42

Multiple Choice

To reduce agency costs, issuing debt instead of equity provides incentives for managers to run a firm efficiently because ________.

• A) debt increases the funds available to managers to run the firm
• B) ownership of managers may remain more concentrated
• C) managers may take actions that benefit shareholders but harm creditors and lower the value of the firm
• D) shareholders prefer to decline new projects to save cash, even if their NPVs are positive

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Newspaper Printing

The process of mass-producing copies of a newspaper document, whereby the news and other data are printed onto papers.

Economies of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit decreases as the scale of production rises.

Inputs

Resources such as labor, materials, and capital used in the production process to create goods and services.

Output

The total amount of goods or services produced by a person, machine, company, or industry.