Which of the Following Statements About Debt Financing Is False

question 106

Multiple Choice

Which of the following statements about debt financing is false?

• A)Debt financing can be either short term or long term.
• B)Debt financing is a form of internal finance.
• C)Under U.S. tax law, long-term debt is more favorably treated than equity financing.
• D)Debt financing exposes a firm to more risk and, therefore, weakens its financial structure.

---

Definitions:

Hidden Curriculum

Lessons, morals, and perspectives not formally documented or intended, yet acquired by students through their school experience.

Racial-Minority Families

Families that are identified as part of a racial group that makes up a smaller percentage of the total population compared to other racial groups.

Skeptical

Having an attitude of doubt or a disposition to incredulity either in general or toward a particular object.

Self-Fulfilling Prophecy

A prediction or expectation that causes itself to become true, due to the feedback between belief and behavior.