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:

Enhanced Injuries

Injuries that are worsened due to another party’s negligence or intentional actions, often considered in legal claims for damages.

Negligently Designed

Refers to a product that was created without due care, leading to a potential risk of harm to the user.

Implied Warranty

An unwritten guarantee that the product sold meets certain criteria for usability and satisfaction.

Merchantability

A warranty, often implied by law, that goods sold are fit for the general purpose for which they are sold.