Why Do Companies Issue Long Term Liabilities

question 96

Multiple Choice

Why do companies issue long term liabilities?

• A) The company desires the income tax advantages
• B) Increase the company's leverage
• C) Debt is less costly than issuing equity
• D) All of these choices

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Definitions:

True Harm

Actual, tangible damage or injury that can be demonstrated and quantified.

Henry Shue

An American philosopher and professor known for his work in the field of international ethics, human rights, and climate justice.

Recognized Hazards

Refers to dangerous conditions or substances that are known, or should have been known, to cause harm to employees in the workplace.

General Duty Clause

A provision in the Occupational Safety and Health Act requiring employers to provide a work environment free from recognized hazards that can cause death or serious physical harm.