Which of the Following Is False Regarding the Issue of Stock

question 140

Multiple Choice

Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?

• A)The payment of dividends is at the discretion of the board of directors.
• B)The payment of interest on bonds payable is required by law.
• C)Interest accrues,whereas dividends do not accrue.
• D)The declaration of dividends reduces the amount of income taxes the corporation must pay.

---

Definitions:

Scheduling

The process of organizing activities or tasks by allotting them specific times for completion or occurrence.

Interview

A formal conversation where questions are asked to obtain information from the interviewee, commonly used in various contexts such as employment, research, and legal procedures.

Prewritten Questions

Questions prepared in advance, commonly used in interviews, surveys, or exams to ensure consistency and efficiency.

Car Accident

A collision involving one or more vehicles resulting in damage, injury, or fatalities.