What Is a Disadvantage of Issuing Bonds Compared to Shares

question 17

Multiple Choice

What is a disadvantage of issuing bonds compared to shares?

• A)The dividends must be paid indefinitely.
• B)Bond interest expense is not tax deductible.
• C)Interest must be paid on a periodic basis regardless of earnings.
• D)Bondholders may require early repayment.

---

Definitions:

Perceived Value

The customer's evaluation of the worth and usefulness of a product or service, influenced by personal opinions and expectations.

Money Objection

A type of resistance or hesitation expressed by a prospect, revolving around the cost, price, or financial commitment associated with the product or service.

EPA Report

An environmental assessment report prepared by the Environmental Protection Agency on the potential impacts of projects or activities.

Environmental Impact

The effect or consequence of human activities or natural events on the natural environment, including changes to ecosystems, air quality, and biodiversity.