All of the Following Are Advantages of Issuing Stock except

question 6

Multiple Choice

All of the following are advantages of issuing stock except:

• A) generally results in a higher earnings per share
• B) creates no interest expense which must be paid
• C) creates no liabilities for the corporation
• D) less risky to the issuing corporation

---

Definitions:

Unliquidated Debt

A debt for which the exact value has not been determined, often due to disputes over amount or the presence of damages.

Unilateral Contract

A type of contract where one party makes a promise in exchange for an act by the other party, becoming binding once the act is completed.

Bilateral Contract

A contractual agreement involving two parties where each promises to perform an act in exchange for the other's act.

Past Consideration

Refers to an act or benefit given in the past that cannot be legally considered as an inducement for a contract.