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:

Society

A group of individuals living together in a more or less ordered community, often sharing customs, laws, and social institutions.

Ethics Compliance Officers

Professionals responsible for ensuring that an organization's actions are in line with legal standards and ethical practices within their industry.

Fraud

The intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right, often involving financial transactions.