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.