A High Level of Debt Can Be a Positive Force

question 69

Multiple Choice

A high level of debt can be a positive force because it allows firms to

• A) take advantage of expansion opportunities.
• B) postpone unnecessary investments.
• C) invest in tax avoiding ventures.
• D) discipline their managers.

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Definitions:

Persuasive Verbalization

The act of using speech or writing to convince or influence someone to believe or do something.

Skolnick and Fyfe

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Agreed-upon norms, rules, or guidelines that are recognized internationally and guide practices across different countries and cultures.

Amnesty International

An international non-governmental organization focused on human rights advocacy.