You are given a background paragraph that describes one or more causal or qualitative relationships such as a relationship in economics or a scientific law and a story that makes use of the concepts or the relationship described in the provided paragraph. You need to come up with a question about the story that requires an understanding of the relationship described in the background paragraph. The generated question should not be answerable without both the background and story. Write a question about the story that requires a relationship in the background paragraph to answer. Check whether your question requires both the background paragraph and the story to answer. If your question can be answered by only one of these, try to rewrite your question so that it requires both. Note that "flipping" a word in the question can give rise to a new question where the answer will be different from the original question. Often, "flipping" a word gives rise to flipping the direction of the relationship, for example, from "increase" to "decrease."

[Q]: Background Paragraph: The trade-off theory of capital structure is the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits. The classical version of the hypothesis goes back to Kraus and Litzenberger[1] who considered a balance between the dead-weight costs of bankruptcy and the tax saving benefits of debt. Often agency costs are also included in the balance. This theory is often set up as a competitor theory to the pecking order theory of capital structure. A review of the literature is provided by Frank and Goyal.[2]

An important purpose of the theory is to explain the fact that corporations usually are financed partly with debt and partly with equity. It states that there is an advantage to financing with debt, the tax benefits of debt and there is a cost of financing with debt, the costs of financial distress including bankruptcy costs of debt and non-bankruptcy costs (e.g. staff leaving, suppliers demanding disadvantageous payment terms, bondholder/stockholder infighting, etc.). The marginal benefit of further increases in debt declines as debt increases, while the marginal cost increases, so that a firm that is optimizing its overall value will focus on this trade-off when choosing how much debt and equity to use for financing. 
Story: Bob is a financial analyst. He used to work for company A. Bob noticed that company A is mostly financed by debt. Recently, he changed job and now working as a financial analyst for another company, company B. Company B has completely different culture than company A. Company B is mostly financed by equity.
[A]: For Which company marginal benefit of increased debt is not an issue?


[Q]: Background Paragraph: The example of someone having a positive experience with a drug is easy to see how drug dependence and the law of effect works. The tolerance for a drug goes up as one continues to use it after having a positive experience with a certain amount the first time.[38] It will take more and more to get that same feeling. This is when the controlled substance in an experiment would have to be modified and the experiment would really begin. The law of work for psychologist B. F. Skinner almost half a century later on the principles of operant conditioning, "a learning process by which the effect, or consequence, of a response influences the future rate of production of that response.[39]. 
Story: The Super Scoops met to discuss their experiences. They all said they always had a great experience using scoop and used the same amount each time. They told how many times they used scoop. Rosario used it 92 times, Sal used it 82 times, Bud used it 52 times, Hilario used it 42 times, Keven used it 32 times, Augustus used it 22 times, and Kory used it 12 times.
[A]: Who has a higher tolerance for scoop: Augustus or Rosario?


[Q]: Background Paragraph: The water level is seasonal, being lowered by about 10 feet (3.0 m) over the winter. The reservoir fills in the spring from snow melt and underground springs. The lake is usually at full level by late spring, but in the occasional years of low snow melt and low rainfall, it may remain up to several feet below its typical level. Water is let out of the lake in the fall so that ice will not damage docks and other structures around the lake. This also leads to excellent water quality, as a significant portion of the water is replaced every year. 
Story: Alpine lake had low water levels this spring although the lake is usually at full level by late spring. Rangers were planning on letting water out of the lake in the fall so that ice will not damage docks and other structures around the lake. The water levels were high enough in the fall so they proceeded in lowering the water level by 10 feet..
[A]:
When are the water levels higher in spring or during the summer?


