Which of the Following Statements About Debt Is False

question 59

Multiple Choice

Which of the following statements about debt is false?
I.Interest payments reduce the scope for waste by management.
II.Debt creates the possibility of bankruptcy.
III.Debt increases the tendency of shareholders to take gambles.
IV.Debt reduces the cash flows that go to government.

• A) I
• B) II
• C) III
• D) IV
• E) None of the statements are false.

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Definitions:

Independent

The condition or quality of being autonomous and free from external control or support.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires.

Emotional Development

The process by which individuals learn to understand and manage their emotions, which plays a crucial role in social interactions and personal growth.

Embarrassment

A feeling of self-consciousness, shame, or awkwardness that arises from an uncomfortable or socially awkward situation.