One of the advantages of debt financing versus equity financing is that:
A) interest does not have to be paid unless the company is profitable.
B) interest expenses can be deducted from company profits, thereby lowering the company's tax liability.
C) company profits can be distributed to bondholders in lieu of interest payments.
D) the funds do not need to be repaid, thus providing financial flexibility for the company.
E) the interest rate is lower than those associated with equity financing.
Question 2
In your first week at a new factory job, you shadow an experienced coworker as she shows you how to operate the machine you will be using on a day-to-day basis. You are currently undergoing _____.
A) development-related training
B) orientation
C) job-related training
D) screening
E) job analysis
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