All of the Following Are Features of Debt Financing Except

question 115

Multiple Choice

All of the following are features of debt financing except

• A) it must be repaid by a deadline.
• B) it makes regular and fixed claims on income.
• C) it may lead to challenge for control of company.
• D) its interest is tax deductible.
• E) it constrains management flexibility.

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Definitions:

Value Added

The increase in worth of a product or service as a result of a particular stage of production or as it moves through the supply chain.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input used, keeping all other inputs constant.

Premium

A premium is the amount paid for an insurance policy, representing the price for the insurance coverage or the amount over the nominal value of something.

Advanced Degrees

Educational certifications beyond the undergraduate level, including master's, doctoral, and professional degrees.