One Reason a Corporation Might Issue Bonds Rather Than Selling

question 15

Multiple Choice

One reason a corporation might issue bonds rather than selling stock is that:

• A) bond interest is a tax-deductible expense.
• B) interest rates are high.
• C) dividends will lower the amount of tax due.
• D) bondholders have claims at liquidation.

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Definitions:

Pyruvate

A critical energy currency of cells, produced from glucose through glycolysis, serving as a key intermediate in several metabolic pathways.

Basal Metabolism

The minimum rate of energy expenditure per unit time by endothermic animals at rest, ensuring basic physiological functions.

Thermoregulation

The process by which organisms regulate their internal body temperature to maintain homeostasis.

Aerobic Respiration

A metabolic process involving oxygen where cells convert nutrients into energy and produce carbon dioxide and water as waste products.