Which of the Following Is Not a Disadvantage of Raising

question 80

Multiple Choice

Which of the following is not a disadvantage of raising capital through the issue of bonds payable?

• A)the bonds are classified as a long-term liability
• B)interest must be paid even if the firm suffers a loss
• C)the face amount must be repaid at maturity
• D)interest is deductible for income tax purposes

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Definitions:

Product Departmentalization

Product departmentalization is an organizational structure method that groups job positions and divisions within a company based on the products or product lines they focus on.

Decision Making

Decision making is the cognitive process of selecting a course of action from multiple alternatives, often involving elements of judgment, evaluation, and analysis.