The weighted average cost that reflects the interrelationship of financing decisions can be obtained by weighing the cost of each source of financing by the target proportion in a firm's capital structure

Which of the following reduces price competition?

a. Increasing the number of competitors. b. Increasing the number of substituting offers. c. Wider distribution of competitor and/or substitution offers. d. High switching costs for consumers. e. Increasing surplus capacity in the industry.

According to a concept called ________ theory, it is more effective for the units of a growing chain to be run by franchisees than by managers because managers are usually paid a salary and may not be as committed to the success of their individual

units as franchisees, who are in effect the owners of the units they manage. A) incentive B) stimulus C) agency D) stewardship E) motivation