Of the Following, Which Is NOT a Feature of Debt

question 70

Multiple Choice

Of the following, which is NOT a feature of debt?

• A)Interest payments.
• B)Maturity date.
• C)Dividends.
• D)Security arrangements.
• E)Risk premiums.

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Definitions:

Working Capital Financing

Short-term financing used to finance the day-to-day operations of a business, specifically its current assets and liabilities.

Summary Balance Sheet

A concise report detailing a company's financial position at a specific time, including assets, liabilities, and equity.

Net Operating Working Capital

The difference between operating current assets and operating current liabilities, indicating the liquidity available for a company's day-to-day operations.

Short-Term Debt

Short-term debt comprises borrowings that are due to be repaid within one year, commonly used to fund daily operations or immediate financial needs.