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11. Which of the following is an advantage of financing with debt? 2. It creates...

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Accounting

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11. Which of the following is an advantage of financing with debt? 2. It creates operating levernge. b. It reduces the risk of bankruptey. c. Debt cannot be eliminated. d. Interest expense on the related debt is a tax-deductible expense. e. Bondholders em mnintain their position indefinitely. 12. Which of the following is a disadvantage of finneing with debt? 2. Interest expense increnses tax liability. b. It dilutes the ownership of a company. c. It earies the ritk of bankruptey. d. It reduces financial leverage. e. Creditors become the owners of the company in tho long nun. 13. Which of the following is a court process which results in either the liguidation or reorganization of company? 2. Deverige b. Security agreements c. Bankuptcy a. Serinl Debt c. Factoring

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