How managers choose to finance the business does not affect the rate of return to shareholders
because the rate of return is based on how the company uses the assets it has, not whether or not
they paid for the assets with debt or equity.
Indicate whether the statement is true or false
FALSE
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Advocates of the institutional theory of social responsibility argue that a firm must have the trust of all groups, both internal and external
Indicate whether the statement is true or false
If the French demand for American exports rises at the same time that U.S. productivity rises relative to French productivity, then, in the long run,
A) the euro should appreciate relative to the dollar. B) the dollar should depreciate relative to the euro. C) the dollar should appreciate relative to the euro. D) it is not clear whether the euro should appreciate or depreciate relative to the dollar.