The Main Difference Between Equity and Debt Finance Is

question 11

Multiple Choice

The main difference between equity and debt finance is:

• A) Debt is always more expensive than equity
• B) Debt is repayable at a specified time but equity is not
• C) Equity can be used for anything whereas debt has to be used for specific purposes

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Definitions:

Risky Behavior

Engaging in actions that expose an individual to danger or harm, often without fully considering the negative consequences.

Kohlberg's

Refers to Kohlberg's theory of moral development, which proposes that the ability to reason morally progresses through specific stages throughout an individual's life.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Hypothetical Situations

Scenarios or conditions that are imagined for the purpose of discussion, analysis, or experimentation, often used in problem-solving and decision-making processes.