All of the Following Are Advantages of Issuing Stock EXCEPT

question 10

Multiple Choice

All of the following are advantages of issuing stock EXCEPT that it:

• A)creates no liabilities for the corporation.
• B)creates no interest expense which must be paid.
• C)generally results in a higher earnings per share.
• D)is less risky to the issuing corporation.

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Definitions:

Deposit

An amount of money placed into an account or given to someone as a partial payment or security for the purchase of something.

Check Register

A record book or digital log used to track checks written, deposits made, and current balance of a bank account.

Cash Balance

The amount of currency and liquid instruments in a company's possession that can be readily used for transactions.

Check

A written order directing the bank to pay a certain sum to a designated party.