A Major Disadvantage Resulting from the Use of Bonds Is

question 165

Multiple Choice

A major disadvantage resulting from the use of bonds is that

• A) earnings per share may be lowered.
• B) interest must be paid on a periodic basis.
• C) bondholders have voting rights.
• D) taxes may increase.

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Definitions:

Reliability

The quality of being dependable and consistent in performance or results.

Selection Technique

A method or process used in hiring, such as interviews or tests, to identify the most suitable candidates for a position based on their skills, experience, and attributes.

Consistency

The quality of always behaving or performing in a similar way, or of always happening in a similar way.

Unstructured

Lacking a defined organization, format, or structure, often leading to unpredictability in processes or outcomes.