Why Might a Company Choose to Increase Its Debt Rather

question 24

Multiple Choice

Why might a company choose to increase its debt rather than issue stock?

• A) to limit the potential rate of return to owners
• B) to require owners to give up some voting control
• C) to reduce financial risk
• D) to retain full ownership and control

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Definitions:

Stuttering

A speech disorder characterized by repetitions, prolongations, or blocks that disrupt the normal flow of speech.

Hearing Impairment

An inability, either complete or partial, to detect sounds in either one or both ears.

Massage Therapist

An individual who is trained to use pressure, kneading, and stroking to promote muscle and full-body relaxation.

Traditional Method

Conventional techniques or approaches that have been used over time, often based on historical or cultural practices.