Which of These Is a Disadvantage of Issuing Stock Relative

question 2

Multiple Choice

Which of these is a disadvantage of issuing stock relative to bonds?

• A) Partial ownership in the business is given up.
• B) Stocks are riskier than bonds.
• C) Repayments to stockholders are required.
• D) Losses are shared by all shareholders, not just the business's founder.

---

Definitions:

Plaintiff

An individual or entity that brings a lawsuit against another in a court of law.

Breach of Contract

The failure of one party to fulfill the terms of a contract without lawful excuse.

Incidental Damages

Additional costs incurred as a consequence of a breach of contract, beyond the direct damages or loss.

Lost Profits

Lost profits refer to the potential earnings a company or individual was unable to realize due to another party's wrongful acts or breaches of contract.