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payments, (4) the right to enforce payments, (5) participation in
management as a result of the advances, (6) the status of the
advances in relation to regular corporate creditors, (7) the
ratio of debt to capital of the corporation, (8) the ability of
the corporation to obtain credit from outside sources, (9) the
use to which the advances were put, (10) the failure of the
debtor to repay, and (11) the risk involved in making the
advances. See Roth Steel Tube Co. v. Commissioner, 800 F.2d 625,
630 (6th Cir. 1986); Calumet Indus., Inc. v. Commissioner, supra;
Dixie Dairies Corp. v. Commissioner, 74 T.C. 476, 493 (1980). No
single factor is determinative, and not all factors are
applicable in each case. See Dixie Dairies Corp. v.
Commissioner, supra. "The various factors * * * are only aids in
answering the ultimate question whether the investment, analyzed
in terms of its economic reality, constitutes risk capital
entirely subject to the fortunes of the corporate venture or
represents a strict debtor-creditor relationship." Fin Hay
Realty Co. v. United States, 398 F.2d 694, 697 (3d Cir. 1968).
We consider each of the suggested factors in our analysis of
whether petitioners created bona fide debt rather than equity, as
determined by respondent.
1. Name Given Instruments Evidencing Indebtedness
The issuance of a note may be indicative of bona fide debt.
See Estate of Mixon v. Commissioner, 464 F.2d 394, 402 (5th Cir.
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