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11 factor list debt vs equity

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musamiji's version from 2016-06-21 08:54

Section

Question Answer
1The labels on the documents evidencing the alleged indebtedness
2The presence or absence of a maturity date
3The source of payments
4The right of the alleged lender to enforce payment
5Participation in management
6A status equal to or inferior to that of regular corporate creditors
7The intent of the parties
8The Adequacy of the (supposed) borrower's capitalization
9Whether stockholders' advances to the corporation are in the same proportion as their equity ownership in the corporation
10The payment of interest out of only "dividend money"
11The borrower's ability to obtain loans from outside lenders
memorize