An Advantage of Using Debt Is That

question 65

Multiple Choice

An advantage of using debt is that:

• A)debt-holders have no control over the company's operations.
• B)debt-holders usually exert no control over the company's operations.
• C)interest payments are fixed.
• D)a company may borrow without the security of an asset.

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Definitions:

Id

In psychoanalytic theory, the part of the mind that is the source of instinctive impulses and demands for immediate satisfaction of primitive needs.

Ego

In Freudian theory, the part of the personality that mediates among the demands of the id, the superego, and reality.

Superego

In psychoanalytic theory, the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Projective Tests

Psychological assessment tools that use ambiguous stimuli to elicit responses that reveal aspects of an individual's personality.