What Effect Does Financing with Debt Have on a Company

question 12

Multiple Choice

What effect does financing with debt have on a company?

• A)It will increase financial risk.
• B)It will decrease the potential return for shareholders.
• C)It will create a requirement to pay dividends.
• D)It will decrease turnover.

---

Definitions:

Grams

A metric unit of mass equal to one thousandth of a kilogram.

Alleles

Different forms of a gene that exist for a particular trait, where variation can lead to differences in the expressed features of organisms.

Teratogens

Substances that during pregnancy can cause development disorders or birth defects in the unborn child.

Enzyme

Biological molecules that significantly speed up the rate of virtually all of the chemical reactions within cells.