Which of the Following Statements Describes an Advantage Inherent in Equity

question 78

Multiple Choice

Which of the following statements describes an advantage inherent in equity financing?

• A) The company is not required to repay equity.
• B) Interest is tax-deductible.
• C) A company has an obligation to pay dividends.
• D) Equity has a maturity date.

---

Definitions:

Gram-positive

Relating to a group of bacteria that retain the crystal violet stain used during the Gram staining method of bacterial differentiation, appearing purple under a microscope.

Gram-variable

Pertaining to bacteria that do not consistently stain either as Gram-positive or Gram-negative because of their cell wall composition variations.

Opaqueness

The quality of being difficult to see through or understand, often used to describe materials that are not transparent or clear communications.

Decant

The process of gently pouring liquid from one container to another to separate it from sediment or other particles at the bottom.