A Primary Motivation for a Company Financing Its Business Activities

question 87

Multiple Choice

A primary motivation for a company financing its business activities through debt is not

• A) Trading on the equity
• B) Reducing earnings variability
• C) Tax-deductibility of interest
• D) Avoiding earnings dilution

---

Definitions:

Lists

Ordered or unordered collections of items or information, often used for organization, reference, or planning.

Diagrams

Visual representations that outline, explain, or clarify complex information or processes, utilizing shapes, symbols, and lines.

Work Breakdown Structure (WBS)

A hierarchical decomposition of a project into smaller components, helping organize and define the total scope of the project.

Hierarchical Listing

An organized structure of items or information ranked and arranged strictly in order of rank, value, or authority.