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

Question

Quizplus · Accepted Answer

Firms with high proportions of intangible assets are likely to use less debt compared to firms with low proportions of intangible assets because intangible assets, such as patents or trademarks, provide less collateral value for debt financing than tangible assets, making borrowing more difficult or expensive.

Studies Have Found That Firms with High Proportions of Intangible