Which of the Following Is NOT a Factor Offsetting the Tax

question 52

Multiple Choice

Which of the following is NOT a factor offsetting the tax advantage of debt as a source of financing?

• A) increased agency costs
• B) increased probability of financial distress (bankruptcy) due to fixed interest payments
• C) alternative tax shields to those supplied by interest payments
• D) All of the above offset the tax advantage of debt as a source of financing.

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Definitions:

Genetic Disorder

A disease or condition caused by an abnormality in an individual's DNA, ranging from small mutations to large chromosomal changes.

Codominance

A genetic scenario where two alleles of a gene pair in a heterozygote are fully expressed, resulting in offspring with a phenotype that is neither dominant nor recessive.

ABO Blood Group

A classification system for human blood based on the presence or absence of antibodies and inherited antigenic substances on the surface of red blood cells.

X Chromosomes

are one of the two types of sex chromosomes, present in two copies in females and one in males, carrying genes important for sexual development and other functions.