All of the Following Are Likely to Result in the Use

question 109

Multiple Choice

All of the following are likely to result in the use of less debt in a company's capital structure except:

• A) desire to maintain financial flexibility.
• B) desire to maintain a high credit rating.
• C) insufficient internal funds.
• D) a decrease in a company's marginal tax rate.

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Definitions:

Course of Employment

Refers to the range of activities employees are or can reasonably be expected to be engaged in as part of their job or while working.

Fiduciary Duty

An obligation to act in the best interest of another party, typically in financial matters.

Inducement

An offer or incentive designed to persuade or influence someone to act in a certain way.

Duty Not to Compete

A legal agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.