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Management Sciences
MEDIUM
ENGLISH
Management Sciences
Which of the following statement is TRUE regarding debt?
A
Debt is an ownership interest in the firm.
Option A
Unpaid debt can result in bankruptcy or financial failure.
Correct answer
C
Debt provides the voting rights to the bondholders.
Option C
D
Corporation’s payment of interest on debt is fully taxable.
Option D
Correct answer: B
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