Which of the Following Would Explain Why a Firm Would

question 99

Multiple Choice

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

• A) The owners do not want the burden of bills to be paid.
• B) The owners are trying to finance production.
• C) The owners want to retain control of the business.
• D) There are more fees associated with issuing stocks.
• E) Bonds are easier to issue than stocks are.

---

Definitions:

Tree Pulp

The fibrous material obtained from trees and used as the primary raw material in the production of paper and certain types of textiles.

Paper Production

The process of converting raw materials into paper, including steps such as pulping, pressing, drying, and finishing.

Treadmill Of Production

Term describing the operation of modern economic systems that require constant growth, which causes increased exploitation of resources and environmental degradation.

Economic Modernization

The process by which an economy transforms from primarily agricultural to one based on the manufacturing of goods and services, often involving technological innovation and changes in socio-economic structures.