Which of the Following Is Not an Advantage of Issuing

question 114

Multiple Choice

Which of the following is not an advantage of issuing bonds instead of ordinary shares?

• A) Shareholder control is not affected.
• B) Earnings per share may be lower.
• C) Income to ordinary shareholders may increase.
• D) Tax savings result.

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Definitions:

Business Communication

The sharing of information between people within an organization that is performed for the commercial benefit of the organization.

Skeptical Audience

A group of listeners or viewers who are inclined to doubt or question the validity of the information presented to them.

Rhetorical Questions

Questions asked for effect or to make a point rather than to elicit a direct answer, often used in persuasive writing or speeches.

Humorous Anecdote

A short and amusing or interesting story about a real incident or person, often used to illustrate a point or entertain.