All of the Following Are Features of Debt Financing Except

question 241

Short Answer

All of the following are features of debt financing except
it must be repaid by a deadline.
it makes regular and fixed claims on income.
it may lead to challenge for control of company.
its interest is tax deductible.
it constrains management flexibility.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.

Accounts Receivable

Money owed to a business for goods or services that have been delivered or used but not yet paid for by customers.

Current Liabilities

Debts or obligations that are due to be paid within one year or within the normal operating cycle of the business, whichever is longer.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.