Corporations in the U.S. Tend To

question 16

Multiple Choice

Corporations in the U.S. tend to:

• A) minimize taxes.
• B) underutilize debt.
• C) rely less on equity financing than they should.
• D) have extremely high debt-equity ratios.
• E) rely more heavily on bonds than stocks as the major source of financing.

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Definitions:

Drawer's Account

In financial terms, the account belonging to the person who writes a check or draft instructing a bank to pay a designated amount of money.

Honor The Check

The act of a bank or financial institution completing the transaction by paying the amount specified on a check from the payer's account to the payee or holder.

Account Aggregation

A financial service that compiles information from various accounts, belonging to an individual or entity, into a single platform for easier management and analysis.

Financial Management

The strategic planning, organizing, directing, and controlling of financial undertakings in an organization or an institution; it also includes applying management principles to the financial assets of an organization.