Which of the Following Is Not a Reason That a Corporation

question 6

Multiple Choice

Which of the following is not a reason that a corporation 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.

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Definitions:

Underlying Norms

Fundamental, often unspoken rules that govern behavior within a group or society.

Political Situation

A scenario characterized by the distribution of power and authority among individuals or groups and the dynamics of political actions and decisions.

Cognitive Dissonance

The inconsistency between a person’s beliefs, attitudes or behaviors.

Ingratiation

A psychological technique wherein an individual attempts to become more attractive or appealing to another person or group by praising or flattery.