Which of the Following Is NOT a Reason Why a Firm

question 34

Multiple Choice

Which of the following is NOT a reason why a firm would choose to follow an aggressive financing policy?

• A) to reduce sensitivity to the firm's credit quality
• B) to reduce agency costs
• C) to take advantage of lower interest rates
• D) to reduce exposure to funding risk

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Definitions:

Conduct Disorder

A mental health disorder diagnosed in childhood or adolescence characterized by a persistent pattern of disruptive and violent behaviors.

Covert-destructive

Refers to actions or behaviors that are secretly harmful or damaging.

Overt-destructive

Characterized by clear, visible behaviors aimed at causing harm or damage, often observable in certain psychological conditions or situations.

Conduct Disorder

A pattern of behavior in children and adolescents marked by aggression towards people or animals, destruction of property, deceitfulness, theft, or serious violations of rules.