Which of the Following Is Not an Advantage of Issuing

question 23

Multiple Choice

Which of the following is not an advantage of issuing bonds instead of common stock?

• A)Stockholder control is not affected
• B)Earnings per share on common stock may be lower
• C)Tax savings result
• D)Each of these answer choices is an advantage.

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Definitions:

Operating Data

Information concerning the day-to-day activities of a business, which can include sales figures, production volumes, and operational costs.

Turnover

The rate at which inventory is sold and replaced or an employee leaves and is replaced in a company.

Operating Assets

Assets used for the operations of a business, such as equipment, inventory, and real estate.

Turnover

The total sales or revenue generated by a company within a specific period, indicating the pace at which a business operates.