Why Would a Corporation Issue Bonds Payable Instead of Issuing

question 104

Multiple Choice

Why would a corporation issue bonds payable instead of issuing stock?

• A)Debt is a less expensive source of capital than stock.
• B)Borrowing by issuing bonds payable carries no risk to the company.
• C)Debts affect the percentage of ownership of the corporation by the stockholders.
• D)Debts don't carry any cost.

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Definitions:

Democratic Allies

Nations or groups that share and support democratic values and principles, often working together on international issues.

Soviet Union

A former federative socialist state in Eurasia that existed from 1922 to 1991, known officially as the Union of Soviet Socialist Republics (USSR).

Communist-Allied

Referring to entities, organizations, or countries that are aligned with or support Communist ideologies or parties.

Political Realism

A theory in international relations focusing on power, self-interest, and the pragmatic aspects of politics, often prioritizing national security and interests over ideological concerns.