Which of the Following Is an Advantage of a Company

question 63

Multiple Choice

Which of the following is an advantage of a company using equity rather than debt to finance a project?

• A)Dividends do not need to be paid.
• B)Interest is tax deductible whereas dividends paid are not.
• C)Dividends always require less cash than does paying interest on debt.
• D)All of these ans choices are advantages of using equity rather than debt to finance a project.

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Definitions:

Nonprofit Nongovernmental Organizations

Independent organizations that operate without government control, focusing on various social, environmental, or humanitarian objectives.

Grassroots Groups

Community-based organizations or movements that initiate action or change from the bottom up, often reflecting the needs, wants, or interests of local or common people.

Green Cup Competition

An event or initiative aimed at promoting environmental sustainability and awareness, often by challenging participants to reduce their carbon footprint or increase recycling efforts.