Which of the following states a disadvantage of debt financing for a corporation?
A. Interest on debt is a tax deductible expense.
B. Debt must be repaid at fixed times even if the entity is not profitable.
C. Upon liquidation of a corporation, the holders of debt securities receive no more than the amount of their claims.
D. Debt securities do not usually provide voting rights and therefore do not dilute the shareholder's control of the corporation.
Answer: B. Debt must be repaid at fixed times even if the entity is not profitable.
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Which of the following does not terminate an offer to purchase real property?
a. A counteroffer. b. When the offeror revokes the offer after the offeree notified them of their acceptance. c. Death of the offeree prior to acceptance. d. When the stated period given by the offeror is exceeded prior to acceptance by the offeree.