Which of the Following Is NOT an Advantage of Issuing

question 46

Multiple Choice

Which of the following is NOT an advantage of issuing bonds to raise funds for a company?

• A)Issuing bonds means other company money is available for other uses.
• B)Investors typically see bonds as less risky than stocks when investing.
• C)Adverse business conditions may make it difficult to pay the interest on the bonds.
• D)Issuing bonds allows a company to expand and potentially achieve greater profits.

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Definitions:

Resource

In finance, a resource refers to any financial asset or input that can contribute to a firm's ability to create goods, services, or further financial gains.

Annuity

A financial instrument that provides a consistent series of payments to a person, often employed as a component of a retirement plan.

Equal Payments

Regular payments of the same amount over a specified period, often associated with loans or mortgages.

Time Intervals

Defined periods or durations that are used for scheduling, analysis, or measurement purposes within various contexts, such as financial planning or project management.