The Fact That 70% of the Interest Income Received by a Corporation

question 54

True/False

The fact that 70% of the interest income received by a corporation is excluded from its taxable income encourages firms to use more debt financing than they would in the absence of this tax law provision.

---

Definitions:

Process

A series of actions or steps taken in order to achieve a particular end.

Innate

describes traits, behaviors, or abilities that are present from birth and not acquired through learning or experience.

Imprinting

A rapid form of learning occurring at a particular life stage wherein a young animal forms attachments to or preferences for specific objects or individuals.

Sensitive Period

A sensitive period is a specific time in an individual's development when they are more responsive to certain experiences or learning opportunities.