All of the Following Are Benefits for a Company to Raising

question 2

Multiple Choice

All of the following are benefits for a company to raising its debt levels EXCEPT

• A)deterrent to takeover by other firms.
• B)improvement in productivity.
• C)improvement in cash flows.
• D)force management to focus on core businesses.
• E)increase in shareholder value.

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Definitions:

Banking Relationship

Refers to the interactions and services between a bank and its customers, including loans, account management, and financial advice.

Babson College

An educational institution in Massachusetts, USA, renowned for its focus on entrepreneurship education.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Installment Contracts

Agreements where payments are made in a series of increments over time in exchange for goods or services.