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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Definitions:

Intercultural Communication

Communication between two or more people who are somewhat to very different from each other on important attributes such as their value orientations, preferred styles of communicating, role expectations, and perceived rules of social relationships.

Orthodox Jewish

Pertains to the followers of Judaism who strictly observe traditional religious laws and practices.

Parental Differentiation

The process by which parents distinguish their needs and identities from those of their children, promoting autonomy and healthy boundaries.

Belongingness

A fundamental human need to feel accepted and valued by one's social groups or community.