Which One of the Following Statements Is True

question 4

Multiple Choice

Which one of the following statements is true?

• A)Bondholders are generally granted voting rights equal to those of common shareholders.
• B)Payments of both interest and dividends are tax-deductible as business expenses.
• C)Unpaid common stock dividends can force a firm into liquidation.
• D)Debt increases the possibility of financial distress.
• E)Debt holders have a residual claim on a firm's assets.

---

Definitions:

Features

Characteristics or attributes of a product or service that are considered significant or beneficial.

Variables

Variables are elements or factors that can change or vary within a study, experiment, or any situation being analyzed, potentially influencing the outcome.

Negative Publicity

Adverse or unfavorable media attention, which can significantly affect a company's or product's reputation.