Which of the Following Is Not a Reason That a Company

question 26

Multiple Choice

Which of the following is not a reason that a company would want to issue bonds instead of stock?

• A)Interest payments can be deducted for income tax purposes.
• B)Stockholders maintain control.
• C)The impact on earnings from using borrowed money may be positive.
• D)There is less risk associated with a bond issue.

---

Definitions:

Prospective Buyer

An individual or organization showing interest in purchasing a product or service, potentially becoming a customer.

Request

A solicitation or petition for something required or desired.

Transaction

The act of buying or selling something; a business deal or financial exchange.

Customer Database

A collection of information about customers, including contact details, purchase history, and preferences, used by businesses to tailor marketing efforts and improve service.