Which of the Following Is Not a Reason for the Issuance

question 130

Multiple Choice

Which of the following is not a reason for the issuance of long-term liabilities?

• A)Debt financing offers an income tax advantage.
• B)Ownership interest is diluted.
• C)Debt may be the only available source of funds.
• D)Debt financing may have a lower cost.

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Definitions:

Points

In finance, a point represents a single unit of measurement for various metrics, including interest rates and stock prices.

Basketball Player

An athlete who participates in the sport of basketball, playing on a team and competing in games and tournaments.

Symmetric

Referring to a shape or function that is mirrored equally on both sides of a central axis.

Skewed

A description of data that are not symmetrically distributed, often showing a longer tail on one side of the distribution's peak.