Which of the Following Is One of the Main Advantages

question 99

Multiple Choice

Which of the following is one of the main advantages of using long-term debt financing instead of equity financing?

• A)Not having to pay back the principal
• B)Ability to raise large amounts of capital
• C)Tax-deductibility of interest
• D)Tax-deductibility of dividends

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Definitions:

Dutch Empire

Was a collection of territories controlled by the Netherlands from the 17th to the 20th centuries, notably in the Americas, Africa, Asia, and Australia, known for its trade networks and colonial activities.

Formal Treaty

A legally binding agreement between two or more sovereign states or international entities, often ratified by the respective parties' legislative bodies.

Royal Family

A family that heads a monarchy, consisting of a king, queen, and their relatives.

King Philip's War

A conflict between Native American tribes led by the Wampanoag leader Metacomet, also known as King Philip, and English settlers in New England (1675-1676), marking one of the deadliest wars in American history.