Which of the Following Statements Is True

question 8

Multiple Choice

Which of the following statements is true?

• A)Bonds never create financial leverage
• B)Interest on bonds is not tax-deductible
• C)Dividends to shareholders are tax-deductible
• D)Interest on bonds is tax-deductible
• E)Issuing bonds will dilute shareholdings

---

Definitions:

High

A state or condition that is above average in quantity, size, or intensity.

Differentiation

The process of distinguishing a product, service, or brand from competitors in ways that make it more appealing to the target market.

New Innovative Unit

A specialized group or department within an organization focused on developing innovative strategies, products, or services.

Market Mechanisms

The various processes and systems through which goods, services, and securities are traded in a market, determining prices through supply and demand.