Which of the Following Is NOT an Advantage for a Firm

question 44

Multiple Choice

Which of the following is NOT an advantage for a firm of using equity rather than debt financing?

• A)Lower cost.
• B)Lower risk of insolvency.
• C)Lower funding risks.
• D)No legal liability to pay dividends.
• E)No requirement to repay capital.

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Definitions:

Lose Weight

The process of reducing body mass, typically through diet, exercise, or a combination of both.

Behavioral Methods

Techniques based on behaviorism used to modify behavior through reinforcement, punishment, or conditioning.

Praise

The expression of approval or admiration for someone or something, often used as a form of encouragement or motivation.

Reinforcers

Stimuli that increase the probability of a response by being introduced or removed following the response.