The term "thin capitalization" means that the corporation is financed primarily with capital stock rather than debt.
Answer the following statement true (T) or false (F)
False
Thin capitalization means that the corporation is primarily financed with debt.
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Changes in a firm's bond rating affect its ability to:
A. claim deductions in tax liability computation. B. procure raw material in sufficient quantity for manufacturing processes. C. increase the coupon rate on bonds issued to investors. D. borrow long-term capital as well as the cost of such funds. E. exercise a call provision on its bonds.
Once the security interest has attached to the collateral, the secured party is protected against the debtor, but not necessarily against a third party creditor
Indicate whether the statement is true or false
Rel Eston, a network service provider, sells off its accounts receivable to a financing company in order to gain early access to funds that would help accelerate company's growth trajectory in the market in the following year. Which of the following short-term financing options is being used by Rel Eston in the given scenario?
A. Trade credit B. Commercial paper C. Short-term bank loans D. Factoring
Tri-state Financial Corporation hires Uri, a real estate agent, to locate investment properties for Tri-state. Uri learns of a warehouse available for $100,000, informs Tri-state, and makes an offer of $90,000 on Tri-state's instruction. The offer is rejected. Uri
A. breached the agent's fiduciary duties to the principal. B. did nothing wrong. C. failed to take advantage of a business opportunity. D. made an unreasonable offer based on current market value.