Examlex

Solved

Debt Has Benefits for Firms Because Interest Is Tax Deductible

question 74

True/False

Debt has benefits for firms because interest is tax deductible.As long as a firm has positive earnings it can receive the full benefit of the tax deductibility of debt interest expense.


Definitions:

Philosophers

Thinkers who engage in critical study, analysis, and questioning of concepts pertaining to existence, knowledge, values, reason, mind, and language.

Society

A community of people living in a more or less ordered community, often characterized by its laws, customs, and organizations.

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating behavior of the marketplace, where individual self-interests unintentionally benefit society.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theories on capitalism and the invisible hand of the market.

Related Questions