Which of the Following Would Explain Why a Firm Would

question 10

Multiple Choice

Which of the following would explain why a firm would want to sell stocks instead of bonds?

• A) The owners are worried about the burden of debt.
• B) The owners don't want to give up ownership of the business.
• C) The owners aren't trying to finance production.
• D) Stocks are easier to issue than bonds are.
• E) There are more fees associated with issuing bonds.

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Definitions:

Ten-Year Terms

A fixed period duration, often used in agreements or contracts, lasting ten years.

U.S. Senate

One of the two chambers of the United States Congress, consisting of 100 members who serve six-year terms representing the 50 states, with each state having two senators.

Reply

A response given to a question or statement, often used in both verbal and written communication.

Original Jurisdiction

The authority of a court to hear a case for the first time as opposed to reviewing a lower court's decision.