For firms in industries that offer some degree of stability, are in a positive stage of growth, and are operating in favorable economic condition, the use of debt is not needed or recommended.

Question

Quizplus · Accepted Answer

Using debt can be beneficial for firms in stable and growing industries as it can provide leverage to finance expansion, take advantage of tax benefits, and optimize capital structure even in favorable economic conditions.

For Firms in Industries That Offer Some Degree of Stability