Studies have found that ﬁrms with high proportions of intangible assets are likely to use ____________debt compared with ﬁrms with low proportions of intangible assets.
A)more
B)the same amount of
C)less
D)either more or the same amount of
E)any amount of debt

Question

Quizplus · Accepted Answer

Firms with high proportions of intangible assets are typically riskier, as the value of these assets is harder to quantify and can fluctuate more than tangible assets. As a result, lenders may require higher interest rates or collateral to offset the increased risk, leading these firms to use less debt compared to firms with lower proportions of intangible assets.

Studies Have Found That ﬁRms with High Proportions of Intangible