Which of the Following Is NOT a Reason Why a Firm

question 34

Multiple Choice

Which of the following is NOT a reason why a firm would choose to follow an aggressive financing policy?

• A) to reduce sensitivity to the firm's credit quality
• B) to reduce agency costs
• C) to take advantage of lower interest rates
• D) to reduce exposure to funding risk

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Definitions:

Obesity

A medical condition characterized by the accumulation of excess body fat to the extent that it may have a negative effect on health, leading to increased risks of various diseases and health problems.

Sudden Unexpected

Events or occurrences that take place without warning and are unforeseen or unanticipated.

Infant Deaths

The demise of a baby before his or her first birthday, often caused by birth defects, preterm birth, maternal complications, or Sudden Infant Death Syndrome (SIDS).

In Vitro Fertilization

A medical procedure whereby an egg is fertilized by sperm in a lab dish, after which the embryo is transferred to a uterus.