Which of the Following Statements About Equity and Debt Financing

question 204

Multiple Choice

Which of the following statements about equity and debt financing is correct?

• A)Equity financing is always better than debt financing.
• B)Equity financing requires dividends to be paid.
• C)Dividends are tax deductible.
• D)Equity financing can change stockholder control.

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Definitions:

Digital Platform

A technology solution that connects users and providers, facilitating interactions or transactions over the internet.

Global Integration

The process of international interconnection and cooperation, through which businesses and economies around the world become more interdependent.

Centralized Arena

A concept or structure where decision-making and authority are concentrated at a single point, especially within an organization.

Multidomestic Strategy

A corporate strategy that involves producing products or services tailored to individual local markets.