Which of the Following Is Not an Advantage of Issuing

question 129

Multiple Choice

Which of the following is not an advantage of issuing bonds instead of common stock?

• A)Stockholder control is not affected.
• B)Earnings per share on common stock may be lower.
• C)Income to common stockholders may increase.
• D)Tax savings result.

---

Definitions:

Fair Use

A legal doctrine that permits limited use of copyrighted material without requiring permission from the rights holders, typically for purposes such as criticism, comment, news reporting, teaching, scholarship, or research.

Patents

Patents are legal documents granted by the government that give inventors exclusive rights to their inventions for a certain period of time.

Complicated Products

Refers to goods or services that have complex features, specifications, or require considerable knowledge to use effectively.

Infringement Lawsuits

Legal actions initiated against individuals or entities for violating intellectual property rights or agreements.