Which of the Following Statements Is False

question 183

Multiple Choice

Which of the following statements is false?

• A) Debt may be the only available source of funds to a company.
• B) Debt financing typically has a higher cost than equity financing.
• C) Debt financing offers an income tax advantage.
• D) Debt does not dilute ownership interests.

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Definitions:

Legal Cause

A legally sufficient reason to file a lawsuit, based on recognized legal principles.

Duty To Render

The legal or ethical obligation to provide a certain level of care or service, especially in professional or emergency situations.

Peril To Herself

Refers to someone being in a situation or engaging in behavior that poses a significant risk of harm to their own well-being.

Proximate Cause

A principle in the law of negligence that determines whether the harm or injury suffered by the plaintiff was a foreseeable consequence of the defendant's action or inaction.