Which of the following best describes the preferred approach for managers confronted with risk?
A. They avoid it by any means necessary.
B. They eliminate it with a thorough understanding of the consequences of each option.
C. They anticipate it, minimize it, and control it.
D. They understand there is no way to manage it.
E. They thrive on taking risks.
Answer: C. They anticipate it, minimize it, and control it.
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Allowing employees to take a full-time temporary position at another company is known as a(n
A. transfer. B. expatriate assignment. C. sabbatical. D. externship. E. lateral move.
In the EBIT-EPS approach to capital structure, a constant level of EBIT is assumed ________
A) to ease the calculations of owners' equity B) to isolate the impact on returns of the financing costs associated with alternative capital structures C) to emphasize the relationship between interest expenses and taxes D) to concentrate on the effect of revenue and expense on capital structure decisions