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:

Negative

Refers to amounts, values, or directions less than zero, often indicating deficit or loss in financial and scientific contexts.

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service, which typically decreases with each additional unit consumed.

Total Utility

The total satisfaction or benefit received by consuming a specific quantity of a good or service.

Units of Utility

A measure of satisfaction or pleasure that a consumer receives from consuming a product or service.