Which of the Following Would Explain Why a Firm Would

question 10

Multiple Choice

Which of the following would explain why a firm would want to sell stocks instead of bonds?

• A) The owners are worried about the burden of debt.
• B) The owners don't want to give up ownership of the business.
• C) The owners aren't trying to finance production.
• D) Stocks are easier to issue than bonds are.
• E) There are more fees associated with issuing bonds.

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Definitions:

Agreeableness

A personality trait characterized by trust, altruism, kindness, affection, and other prosocial behaviors.

Major Life Events

Significant occurrences in a person's life that have the potential to influence mental health and well-being.

Conscientious

Describing a person who shows diligence and a willingness to do what is right.

Neurotic

A term relating to neurosis, involving long-term tendencies to experience negative emotional states like anxiety, depression, or irritability.