Managers need to take into account a number of perspectives when assessing the "first" criteria.The ________ focuses on comparing the firms capital structure with those of industry competitors.
A)competitive perspective
B)internal perspective
C)investor perspective
D)creditor perspective

Question

Quizplus · Accepted Answer

The competitive perspective focuses on comparing the firm's capital structure with those of industry competitors, which fits with the given description of the "first" criteria. The internal perspective focuses on the firm's own financial goals and strategies, the investor perspective focuses on maximizing shareholder value, and the creditor perspective focuses on the firm's ability to make payments on debt obligations. While all of these perspectives may be relevant in assessing capital structure, the description given specifically points towards the competitive perspective.

Managers Need to Take into Account a Number of Perspectives