Which of the Following Would Explain Why a Firm Would

question 99

Multiple Choice

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

• A) The owners do not want the burden of bills to be paid.
• B) The owners are trying to finance production.
• C) The owners want to retain control of the business.
• D) There are more fees associated with issuing stocks.
• E) Bonds are easier to issue than stocks are.

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