Which of the Following Is the Major Advantage to Privately

question 60

Multiple Choice

Which of the following is the major advantage to privately placing a bond?

• A) The bond pays a lower interest rate.
• B) The bond has less risk.
• C) The direct placement offers tax advantages.
• D) The firm saves issuing costs.

Recognize the tax implications for partners within a partnership.

Understand how partnerships are formed, including the admission of new partners and the departure of existing ones.

Identify the advantages and disadvantages of partnerships.

Know the accounting procedures relevant to partnerships, including the treatment of salary and interest allowances.

---

Definitions:

Predictive

Relating to the ability to use known data to forecast the value, trend, or likelihood of an event happening in the future.

Descriptive

Pertains to statistical methods used to summarize, show, or describe data features without drawing conclusions or inferring from the sample to the population.

Categories

Distinct groups or classifications into which items or observations are divided based on shared qualities or characteristics.

Data Mining

The process of analyzing large sets of data to discover patterns and relationships that can inform decision making.