Which of the Following Will Help Avoid the Thin Capitalization

question 21

Multiple Choice

Which of the following will help avoid the thin capitalization problem?

• A) Avoid any provision for interest.
• B) Do not provide for a definite maturity date.
• C) Make repayment contingent on the corporation's earnings.
• D) Subordinate the debt to other liabilities.
• E) None of the above.

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