Which of the Following Is Not an Advantage of Issuing

question 114

Multiple Choice

Which of the following is not an advantage of issuing bonds instead of ordinary shares?

• A) Shareholder control is not affected.
• B) Earnings per share may be lower.
• C) Income to ordinary shareholders may increase.
• D) Tax savings result.

---

Definitions:

Net Social Gain

The overall benefit to society from an economic transaction or policy, taking into account both benefits and costs.

Monopoly

A monopoly is a market structure where a single firm has exclusive control over the market supply of a product or service, often leading to higher prices for consumers.

Megawatts

A unit of power equal to one million watts, often used to describe the output capacity of power plants or the amount of electricity required by large entities.

Rent-Seeking Behavior

Actions by individuals or companies to increase their own wealth without creating new wealth or value, often through manipulating the environment in which economic activities occur.