From the Point of View of the Business, Which of the Following

question 49

Multiple Choice

From the point of view of the business, which of the following is an advantage of using long-term debt rather than equity in financing?
I. Interest is tax deductible.
II. It does not dilute the control of existing owners.
III. Creditors do not share in any excess profits of the entity.
IV. Interest payments are a fixed commitment regardless of profits.

• A) I, II, III, IV
• B) I, IV
• C) I, II, III
• D) I, III

---

Definitions:

Anhedonia

A condition characterized by a diminished ability to experience pleasure or interest in previously enjoyable activities.

Hallucinations

Hallucinations are perceptions in the absence of external stimuli, which have qualities of real perception, in the context of sensory experiences.

Perceptual Experiences

The subjective interpretation of sensory information, shaping how one perceives the world around them.

Beliefs

Cognitive content held as true by an individual or group, often without empirical evidence.