Which of the Following Statements Is False Regarding the Issuance

question 53

Multiple Choice

Which of the following statements is false regarding the issuance of stock versus bonds to raise capital for a corporation?

• A)The declaration of dividends reduces the amount of the corporation's taxable income.
• B)Interest accrues; whereas, dividends do not accrue.
• C)The payment of bond interest is a contractual requirement.
• D)The payment of dividends is at the discretion of the board of directors.

---

Definitions:

Promotional Salesperson

An individual who focuses on creating immediate product interest, offering special deals or incentives as part of a short-term sales strategy.

Personal-Selling

A direct sales approach where salespeople interact face-to-face with potential buyers to promote and sell products or services.

Specialist

An individual or business highly skilled and knowledgeable in a specific area or field, offering expertise-based services or products.

Farmer Salesperson

An individual who is both a farmer and takes an active role in marketing and selling the agricultural products directly to consumers or retailers.