Which of the Following Is NOT an Advantage of Private

question 60

Multiple Choice

Which of the following is NOT an advantage of private debt over public debt?

• A) It is liquid.
• B) It need not be registered with the U.S. Securities and Exchange Commission.
• C) It has to have interest and principal payments made upon it.
• D) It does not dilute the ownership of a firm.

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Definitions:

Risk

The exposure to the chance of loss or adverse outcomes in decision-making and financial investments, varying in likelihood and potential impact.

Uncertainty

The lack of certainty or predictability in the outcome of an event, often affecting decision-making and financial projections.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Transactional Approach

An accounting method focusing on recording individual business transactions and their impact on the financial statements.