The statement "Successful companies never hold long-term debt permanently" can be evaluated by understanding how successful companies manage their finances.

1. **Understanding Long-Term Debt**: Long-term debt can include loans, bonds, and other forms of borrowing that are due to be paid back over a period longer than one year. This can provide companies with the capital they need to invest in growth, operations, or acquisitions.

2. **Successful Financial Strategies**: Many successful companies use long-term debt as a strategy to leverage their investments and balance their capital structure. By borrowing at a lower cost than they can produce returns, they can enhance profitability.

3. **Debt Management**: It is not necessarily true that successful companies avoid long-term debt. Instead, they manage it effectively. They may use long-term debt to finance investments that generate returns exceeding their cost of debt.

4. **Conclusion**: Given these insights, the statement is **False**. Successful companies can and often do hold long-term debt, but they manage it strategically to ensure it contributes positively to their growth and financial health.

Therefore, the answer is **False**.

Question

The statement "Successful companies never hold long-term debt permanently" can be evaluated by understanding how successful companies manage their finances.

1. **Understanding Long-Term Debt**: Long-term debt can include loans, bonds, and other forms of borrowing that are due to be paid back over a period longer than one year. This can provide companies with the capital they need to invest in growth, operations, or acquisitions.

2. **Successful Financial Strategies**: Many successful companies use long-term debt as a strategy to leverage their investments and balance their capital structure. By borrowing at a lower cost than they can produce returns, they can enhance profitability.

3. **Debt Management**: It is not necessarily true that successful companies avoid long-term debt. Instead, they manage it effectively. They may use long-term debt to finance investments that generate returns exceeding their cost of debt.

4. **Conclusion**: Given these insights, the statement is **False**. Successful companies can and often do hold long-term debt, but they manage it strategically to ensure it contributes positively to their growth and financial health.

Therefore, the answer is **False**.

Knowee AI · Accepted Answer

The statement "Successful companies never hold long-term debt permanently" can be evaluated by understanding how successful companies manage their finances.

1. **Understanding Long-Term Debt**: Long-term debt can include loans, bonds, and other forms of borrowing that are due to be paid back over a period longer than one year. This can provide companies with the capital they need to invest in growth, operations, or acquisitions.

2. **Successful Financial Strategies**: Many successful companies use long-term debt as a strategy to leverage their investments and balance their capital structure. By borrowing at a lower cost than they can produce returns, they can enhance profitability.

3. **Debt Management**: It is not necessarily true that successful companies avoid long-term debt. Instead, they manage it effectively. They may use long-term debt to finance investments that generate returns exceeding their cost of debt.

4. **Conclusion**: Given these insights, the statement is **False**. Successful companies can and often do hold long-term debt, but they manage it strategically to ensure it contributes positively to their growth and financial health.

Therefore, the answer is **False**.

Successful companies never hold long term debt permanently.Question 10Select one:TrueFalse

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Successful companies never hold long term debt permanently.

Question 10

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