Answer the following statements true (T) or false (F)
1. The pecking order explanation of capital structure states that a hierarchy of financing exists for firms, in which new external debt financing is employed first, followed by retained earnings and finally by external equity financing
2. The asymmetric information explanation of capital structure suggests that firms will issue new equity only when the managers believe the firm's stock is overvalued; as a result, issuing new equity is considered a negative signal that will result in a decline in share price.
3. The asymmetric information explanation of capital structure suggests that firms will issue new debt only when the managers believe the firm's stock is overvalued; as a result, issuing new debt is considered a negative signal that will result in a decline in share price.
4. Holding all other factors constant, a firm that is subject to a greater level of business risk should employ less operating leverage than an otherwise equivalent firm that is subject to a lesser level of business risk.
5. Holding all other factors constant, a firm that is subject to a greater level of business risk should employ more operating leverage than an otherwise equivalent firm that is subject to a lesser level of business risk.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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Answer the following statements true (T) or false (F)
1. One non-traditional method of training is to send your employees to eat at your competitors’ and observe their top performers so that they can copy their techniques. 2. After training has begun, a needs assessment should be conducted to determine how perceived problems or weaknesses should be addressed. 3. Service failure can be a result of strategic issues, the service environment, and the service delivery system. 4. Coaching is considered a form of external training.
A cost hierarchy and a bill of activities are tools for the implementation of activity-based costing
Indicate whether the statement is true or false
Which of the following shows the correct order of the storage procedures?
a. Inspecting, indexing, cross referencing, coding, sorting and storing b. Indexing, coding, inspecting, sorting, cross referencing and storing c. Indexing, sorting, inspecting, cross referencing, coding and storing d. Inspecting, indexing, coding, cross referencing, sorting and storing
Answer the following statements true (T) or false (F)
1. Selfish leaders can be classified as impulsive, narcissistic or Machiavellian. 2. Putting others first can help meet the ethical challenges of leadership and avoid destructive behaviors. 3. Researchers have found that only cognitive areas of the brain are activated when making ethical decisions. Emotional areas of the brain do not respond.