All of the Following Would Most Likely Eliminate the Need

question 96

Multiple Choice

All of the following would most likely eliminate the need for additional laws governing right and wrong in business settings EXCEPT:

• A) stringent codes of ethics.
• B) moral organizational cultures.
• C) ethical examples from top management.
• D) standardization of fixed points of reference.
• E) support for corporate social responsibility programs.

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Definitions:

Interest Tax Shield

The reduction in income taxes that results from the deductibility of interest expense from taxable income.

Capital Structure

The mix of debt and equity financing a company uses for its operations and growth.

Optimal Capital Structure

Optimal capital structure is the mix of debt, equity, and other financing sources that minimizes a firm's cost of capital and maximizes shareholder value, balancing risk and return.