With the exception of a few industries, most corporations in the U.S. tend to:
A) minimize taxes.
B) underutilize debt.
C) rely equally on debt and equity.
D) have relatively similar debt-equity ratios across industry lines.
E) rely more heavily on debt than on equity.

Question

Quizplus · Accepted Answer

Most corporations in the U.S. tend to underutilize debt due to the risks associated with high leverage, such as financial distress and bankruptcy, preferring to maintain financial flexibility.

With the Exception of a Few Industries, Most Corporations in the U.S