From the Standpoint of the Issuing Company, a Disadvantage of Using

question 51

Multiple Choice

From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that

• A) bond interest is deductible for tax purposes.
• B) interest must be paid on a periodic basis regardless of earnings.
• C) income to shareholders may increase as a result of trading on the equity.
• D) the bondholders do not have voting rights.

---

Definitions:

Traditional Classroom Instruction

Educational methods involving direct teaching and learning that occur in a physical classroom setting, emphasizing face-to-face interactions between teachers and students.

On-the-job Training

A method of learning and skill development that occurs within the workplace, enabling employees to gain practical experience while performing their duties.

Wasted Materials

Resources that are not used efficiently or effectively, leading to unnecessary expenses and environmental impact.