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.

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Definitions:

Environmental Legislation

Laws and regulations enacted by government bodies to protect the environment from pollution, degradation, and other harms, often setting standards for air, water, and soil quality.

Pollution

The contamination of the natural environment by harmful substances leading to adverse effects on living beings and ecosystems.

Enforcement Officers

Government or agency officials charged with ensuring compliance with laws, regulations, or orders.

Compliance Monitoring

The process of ensuring that a company or organization adheres to legal, regulatory, and policy standards.