Which of the Following Is a Disadvantage of Issuing Bonds

question 49

Multiple Choice

Which of the following is a disadvantage of issuing bonds instead of common shares?

• A) Shareholder control is not affected.
• B) The principal of the debt must be repaid at maturity.
• C) Income to common shareholders may increase.
• D) Earnings per share will increase.

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Definitions:

Procedural Due Process

A legal principle that ensures fair procedures (like notice and a fair hearing) are followed before the government takes away a person's life, liberty, or property.

North Carolina State Statute

Laws enacted by the North Carolina General Assembly that govern the state.

Life, Liberty, Property

Fundamental rights protected by various legal systems, often considered the basis for a free and just society.

Harmful To Minors

Material or conduct deemed inappropriate or damaging to individuals under the age of majority.