Which of the Following Is a Good Reason for a Company

question 92

Multiple Choice

Which of the following is a good reason for a company to have higher than average debt ratios?

• A) The company's cash flows are difficult to predict.
• B) The company generates little taxable income.
• C) Customer support is an important aspect of the company's business.
• D) The company faces high marginal tax rates.

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Definitions:

Process Theories of Motivation

Theories that focus on the psychological and behavioral processes influencing individuals’ motivation, including how they make decisions about their behavior in relation to their goals.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on the expectation that their actions will lead to desired outcomes.

Instrumentality

Is a person’s belief that various outcomes will occur as a result of task performance.

Organisational Behaviour Modification

A systematic approach to changing behavior in an organization through the application of learning theories to improve performance and satisfaction among employees.