Which of the Following Is Not an Advantage of Issuing

question 6

Multiple Choice

Which of the following is not an advantage of issuing bonds versus issuing stock to finance expansion?

• A)Stockholders remain in control as bondholders cannot vote or share in the company's earnings.
• B)Interest expense is tax deductible but dividends are not.
• C)Money can usually be borrowed at a lower rate and then invested to earn a higher return on assets.
• D)The fixed payment dates for the interest and maturity value.

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Definitions:

Efferent Nerves

Nerves that carry signals away from the central nervous system to effectors such as muscles and glands.

Central Nervous System

The central nervous system (CNS) consists of the brain and spinal cord, functioning as the primary control center for processing and sending out information throughout the body.

Motor Neurons

Nerve cells that initiate and control the movement of muscles.

Sensory Neurons

Nerve cells within the nervous system responsible for converting external stimuli from the organism's environment into internal electrical impulses.