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Which Statement Best Describes the Major Drawback to the Use

Question 47

Multiple Choice

Which statement best describes the major drawback to the use of debt financing?


A) Debt financing gives common shareholders a voice in company management.
B) Debt financing is a form of permanent financing.
C) The interest paid in debt financing is not tax-deductible.
D) Financial risk is always a possibility with debt financing.

Correct Answer:

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