Which of the Following Is Not a Reason Why Companies

question 20

Multiple Choice

Which of the following is not a reason why companies issue stock?

• A) It allows owners to raise capital without having to borrow.
• B) It allows owners to share the risk of failure.
• C) It allows owners to turn an illiquid asset into a liquid one.
• D) It allows owners to file bankruptcy.

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Definitions:

Reverse Auction

A type of auction in which the roles of buyer and seller are reversed, with sellers competing to obtain business from the buyer by offering the lowest price.

eBay

An online marketplace that allows individuals and businesses to buy and sell a wide variety of goods and services.

Brick-and-Mortar

Physical retail stores located in buildings as opposed to online or virtual spaces.

Online Presence

The visibility of an individual, organization, or brand on the internet, achieved through websites, social media, and other digital platforms.