Some people--including the former chairman of the Federal Reserve Board of Governors (Ben Bernanke) --have argued that one advantage of corporate debt from the stockholders' standpoint is that the existence of debt forces managers to focus on cash flow and to refrain from spending too much of the firm's money on private plane and other "perks." This is one of the factors that led to the rise of LBOs and private equity firms.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Which of the following statements best compares long-term borrowing capacity ratios?
a. The debt/equity ratio is more conservative than the debt ratio. b. The debt ratio is more conservative than the debt/equity ratio. c. The debt/equity ratio is more conservative than the debt to tangible net worth ratio. d. The debt to tangible net worth ratio is more conservative than the debt/equity ratio. e. The debt ratio is more conservative than the debt to tangible net worth ratio.
In short-run decision making, the alternative with the lowest overall cost is always chosen
Indicate whether the statement is true or false
Which of the following is the BEST beginning to a persuasive claim message to Ruth's Catering?
a. Please reimburse a total of $1,500 for serving the wrong meal at our recent company dinner. b. Because you served the wrong menu at our recent company dinner, I am requesting that you reimburse us a total of $1,500. c. A problem occurred with the catering we recently received from Ruth's Catering. d. Satisfying customer needs has obviously been a cornerstone in the success of Ruth's Catering.
The brand _______________________ is influenced by the traits of the typical user.
a. Personality b. Image c. Loyalty d. Identity