Which of the Following Is Not an Advantage of Raising

question 41

Multiple Choice

Which of the following is not an advantage of raising equity via the issue of ordinary shares?

• A)Dividend payment is not an obligation.
• B)It reduces borrowing costs.
• C)Borrowing entails higher transaction costs than raising equity,as the company has to prepare disclosure documents to attract lenders.
• D)None of the given options.

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Definitions:

Turgor Pressure

The internal pressure exerted by water pushing against the cell wall, which helps maintain plant structure and firmness.

Absorbing Water

The process by which water molecules are taken in by a material or organism.

Leaf Abscission

The process by which a plant sheds its leaves, often in response to environmental factors or seasonal changes to conserve resources.

Temperatures

A measurement of the degree of heat or cold as manifested by the thermodynamic properties of a material or environment.