The Use of Debt Is Not Typically Needed for Firms

question 82

True/False

The use of debt is not typically needed for firms in industries that offer some degree of stability, are in a positive stage of growth, and are operating in favorable economic conditions.

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Definitions:

Discounted Note

A promissory note that is issued at a price lower than its face value and repaid at its face value at maturity.

Cash Proceeds

The total amount of cash received from transactions, often relating to the sale of assets or products.

Discounted Note

A financial instrument involving a loan document that has been reduced from its face value to reflect current market interest rates.

Journal Entry

A record of a business transaction in an accounting journal that details the financial implications of the transaction.