The game involves two people and one pot of money. One person divides the money between himself and the other person; the second person can either accept his portion of the money or reject it.

(A) take-it-or-leave-it
(B) fair play
(C) endowment
(D) ultimatum

The answer is (D) ultimatum

Explanation:

One player, the proposer, is endowed with a sum of money. The proposer is tasked with splitting it with another player, the responder. Once the proposer communicates their decision, the responder may accept it or reject it. If the responder accepts, the money is split per the proposal; if the responder rejects, both players receive nothing. Both players know in advance the consequences of the responder accepting or rejecting the offer.

answer; capital structure decision;