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Equity and Debt Financing Both Have Their Advantages and Disadvantages

question 251

Multiple Choice

Equity and debt financing both have their advantages and disadvantages.Which of the following pairs of phrases below accurately reflect the advantages of both types of financing? $Equity and debt financing both have their advantages and disadvantages.Which of the following pairs of phrases below accurately reflect the advantages of both types of financing? \begin{array}{|l|l|l|} \hline & \text { Debt Financing } & \text { Equity Financing } \\ \hline \text { D) } & \text { Dividends are optional } & \text { Interest is tax deductible }\\\hline \end{array} A) Option A B) Option B C) Option C D) Option D$ $Equity and debt financing both have their advantages and disadvantages.Which of the following pairs of phrases below accurately reflect the advantages of both types of financing? \begin{array}{|l|l|l|} \hline & \text { Debt Financing } & \text { Equity Financing } \\ \hline \text { D) } & \text { Dividends are optional } & \text { Interest is tax deductible }\\\hline \end{array} A) Option A B) Option B C) Option C D) Option D$ $Equity and debt financing both have their advantages and disadvantages.Which of the following pairs of phrases below accurately reflect the advantages of both types of financing? \begin{array}{|l|l|l|} \hline & \text { Debt Financing } & \text { Equity Financing } \\ \hline \text { D) } & \text { Dividends are optional } & \text { Interest is tax deductible }\\\hline \end{array} A) Option A B) Option B C) Option C D) Option D$ $\begin{array}{|l|l|l|}\hline & \text { Debt Financing } & \text { Equity Financing } \\\hline \text { D) } & \text { Dividends are optional } & \text { Interest is tax deductible }\\\hline \end{array}$

Definitions:

Corporate Profits

Denotes the financial surplus generated by a company after deducting all its expenses from its total revenue.

Corporate Social Responsibility

The concept that businesses should be accountable for their impact on society and the environment, often beyond legal requirements.

Sodium Reduction

Sodium reduction involves strategies and practices aimed at decreasing the amount of sodium in food products to improve public health outcomes.

Fast Food Chain

A series of restaurants, often part of a corporate franchise, offering quick service and a limited menu of food items.