One Reason a Corporation Might Issue Bonds Rather Than Selling

question 15

Multiple Choice

One reason a corporation might issue bonds rather than selling stock is that:

• A) bond interest is a tax-deductible expense.
• B) interest rates are high.
• C) dividends will lower the amount of tax due.
• D) bondholders have claims at liquidation.

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Definitions:

Death Rates

The number of deaths in a particular population, scaled to the size of that population, per unit of time.

Per Capita

A statistical measure that divides a total figure by the number of people in a population, used to give an average per person.

Water Consumption

The total volume of water used by individuals, communities, industries, or agriculture over a specified period.

Total Fertility Rate

The average number of children that would be born to a woman over her lifetime, given current birth rates.