Which of the Following Is One of the Main Advantages

question 99

Multiple Choice

Which of the following is one of the main advantages of using long-term debt financing instead of equity financing?

• A)Not having to pay back the principal
• B)Ability to raise large amounts of capital
• C)Tax-deductibility of interest
• D)Tax-deductibility of dividends

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Definitions:

True Science

An approach to understanding the natural world through systematic observation, experiment, and evidence, distinguishing it from pseudoscience.

Positive Correlation

A statistical relationship between two variables in which they move in the same direction, meaning as one variable increases, so does the other.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, and vice versa.

Alcohol Consumption

The intake of beverages containing ethanol, which can have various effects on health and behavior depending on the amount and frequency of use.