With the Exception of a Few Industries, Most Corporations in the U.S

question 39

Multiple Choice

With the exception of a few industries, most corporations in the U.S. tend to:

• A) minimize taxes.
• B) underutilize debt.
• C) rely equally on debt and equity.
• D) have relatively similar debt-equity ratios across industry lines.
• E) rely more heavily on debt than on equity.

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Definitions:

President Eisenhower

Dwight D. Eisenhower, the 34th President of the United States, who served from 1953 to 1961, previously a five-star Army general during World War II.

New Deal

was a series of programs, public works projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to help alleviate the effects of the Great Depression.

Tax Increase

A rise in the amount of money that individuals or corporations must pay to the government based on earnings or purchases.

Federal Budget Deficit

The shortfall that occurs when the government's expenditures exceed its revenues in a fiscal year.