Small Firms Use Debt Financing Because Interest Payments Are Tax-Deductible

question 22

True/False

Small firms use debt financing because interest payments are tax-deductible expenses.

---

Definitions:

Aqueous Solution

An Aqueous Solution is any solution in which water (H2O) acts as the solvent.

pH

A scale used to specify the acidity or basicity of an aqueous solution, with values ranging from 0 to 14.

Alkyl Group

A group of atoms derived from an alkane, containing only carbon and hydrogen atoms, arranged in a chain.

Aspartic Acid

An amino acid that plays a vital role in the biosynthesis of proteins and in neurotransmitter release and synthesis.