Which of the Following Is NOT a Factor Offsetting the Tax

question 52

Multiple Choice

Which of the following is NOT a factor offsetting the tax advantage of debt as a source of financing?

• A) increased agency costs
• B) increased probability of financial distress (bankruptcy) due to fixed interest payments
• C) alternative tax shields to those supplied by interest payments
• D) All of the above offset the tax advantage of debt as a source of financing.

---

Definitions:

American Evaluation Association

A professional organization dedicated to improving evaluation practices and methods, enhancing evaluation use, and supporting the contribution of evaluation to the generation of theory and knowledge about effective human action.

Autonomy

Autonomy in ethics and morality refers to the capacity of a rational individual to make an informed, uncoerced decision. It is often discussed in the context of bioethics, philosophy, and psychology.

Informed Consent

A process by which a fully informed individual voluntarily agrees to participate in a particular activity, after understanding all relevant risks and benefits.

IRB Approval

The authorization granted by an Institutional Review Board (IRB) which confirms a study's research plan is ethical and the rights and welfare of participants are protected.