Describe the Pecking Order Hypothesis
What will be an ideal response?
Answer: Moving from one source of funding to another in a particular order is called the Pecking Order Hypothesis (POH). The actual hypothesis is somewhat complicated and begins with the concept of asymmetric information. Information is asymmetric when one party in a contract has a different set of information from the other party in the contract. For our purposes, asymmetric information means that managers or owners of a company know more about the future performance of the company than potential outside lenders–a not unexpected assumption.
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Robert is Sarah’s assistant. Each morning, Robert presents a list of relevant updates and/or messages left for Sarah from the previous workday when he brings her a coffee. Robert’s communication to Sarah is an example of ______ communication.
a. downward b. upward c. horizontal d. informal
A digital dashboard produces graphical displays of patterns and complex relationships in large amounts of data.
Answer the following statement true (T) or false (F)
Which of the following must be stated in a Chapter 7 bankruptcy petition?
A) That the debtor is not paying debts as they come due B) For voluntary petitions, that the debtor has debts, and for involuntary petitions, that the debtor is not paying debts as they come due C) For both voluntary and involuntary petitions, that debts exceed assets D) For voluntary petitions, that the debtor is not paying debts as they come due, and for involuntary petitions, that the debtor has debts
Which of the following represents a reason for globalizing operations?
A) to improve the supply chain B) to improve operations C) to expand a product's life cycle D) to attract and retain global talent E) all of the above