Which of the Following Is Not a Financial Advantage to Companies

question 29

Multiple Choice

Which of the following is not a financial advantage to companies using debt?

• A) Debt is paid back in "cheaper" dollars during inflationary periods.
• B) Bond holders have no control over the actions of management.
• C) The cost of debt can lower the weighted overall cost of capital.
• D) Interest payments are tax deductible.

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Definitions:

Greater Rewards

Greater rewards are more substantial or significant benefits or compensations offered or received as a result of achieving higher goals or performing exceptionally well.

Pleasant to Occupy

Describes a space or environment that is enjoyable and comfortable to be in.

Talcott Parsons

An American sociologist known for his development of a general theoretical system for the analysis of society called structural functionalism.

Goal Attainment

is the process or strategy of reaching a desired outcome or objective, often discussed within the context of organizational behavior and social action.