Defensive pessimists tend to achieve success by _____

Consumer product manufacturers spend more money on trade promotions directed towards retailers while service companies spend more money on media advertising

Indicate whether the statement is true or false

The lower risk nature of long-term debt in a firm's capital structure is due to the fact that ________

A) the debt holders are the true owners of the firm B) equity capital has a fixed return C) creditors have a higher position in the priority of claims D) dividend payments are tax-deductible