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:

Class Type

Another term for a data type defined by a programmer through a class, specifying the operations that can be performed and how data is stored.

Reference

In programming, it is a value that enables a program to indirectly access a particular datum, such as a variable or a structure, in the memory.

Privacy Leak

The unauthorized disclosure of personal or confidential information from a digital system to an unintended audience.

Private Modifier

A keyword in programming that restricts access to members of a class (such as methods or variables) to the class itself.