Which of the following statements about debt is true?
A) Increasing debt increases the firm's flexibility.
B) As debt increases, distress costs decrease.
C) Using debt causes a loss of ownership by the firm.
D) Using debt allows the firm to earn money using someone else's money.
E) As the level of debt increases, the firm's credit rating begins to matter less.
D
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The difference between mediation and arbitration is?
A) mediation is similar to a trial in that the mediator will make a decision that will be binding on the parties B) arbitration is like a trial in that the arbitrator will make a decision that will be binding on the parties C) there is no difference between the two; they are different names for the same process called Alternate Dispute Resolution (ADR); D) only a judge can be a mediator while anyone can be an arbitrator
Which of the following refers to a key strategy used by corporations to combat international price escalation?
A) lengthen the distribution channel B) ship assembled products to save additional labor costs C) redesign the product to remove costly features D) centralize production and sourcing to a single location