Which of the Following Statements Is True of Debt Loans

question 103

Multiple Choice

Which of the following statements is true of debt loans?

• A) Management has the discretion in paying the amount to investors.
• B) Debt loans should be repaid at regular intervals.
• C) Returns from debt loans are variable in nature.
• D) Corporations need not pay back the debt loans if they incur losses.

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Definitions:

Agrarian Society

A community whose economy is based on producing and maintaining crops and farmland.

Self-employed Farmers

Individuals who operate their own agricultural enterprises, producing crops or raising livestock, without being employed by another entity.

Blacksmiths

Artisans who work with metal, particularly iron, using tools to forge and shape it into products such as tools, weapons, and structures.

AFL

The American Federation of Labor, a national federation of labor unions in the United States, founded in 1886 and focused on skilled workers.