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:

Government Involvement

Government Involvement in the economy can include regulation, direct participation in the market, fiscal policies, and other actions intended to influence economic outcomes.

Corporate Relocations

The process of moving a company's operations, headquarters, or facilities from one location to another, often for strategic, operational, or financial reasons.

Economic Research

The systematic study of economic phenomena and questions, using data and statistical methods to analyze and predict economic behaviors.

Rent-Seeking Behavior

Activities aimed at increasing one’s share of existing wealth without creating new wealth, often through manipulation or exploitation of the political environment.