The Advantage to a Corporation of Issuing Bonds Instead of Stock

question 121

Multiple Choice

The advantage to a corporation of issuing bonds instead of stock is that

• A)The owners keep control of the company.
• B)Bond prices do not fluctuate.
• C)The owners do not have to make interest payments on the loan.
• D)The possibility of default is lower when bonds are issued.

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Definitions:

Otoplasty

A surgical procedure to change the shape, position, or size of the ears.

Stapedectomy

A surgical procedure aimed at improving hearing by removing part or all of the stapes bone in the middle ear and replacing it with a small prosthetic device.

Tympanectomy

A surgical procedure involving the removal of all or part of the eardrum, often to treat infections or other ear problems.

Ossicles

The three small bones in the middle ear known as the malleus, incus, and stapes, which transmit sound vibrations to the inner ear.