One Reason a Corporation Might Issue Bonds Rather Than Selling

question 15

Multiple Choice

One reason a corporation might issue bonds rather than selling stock is that:

• A) bond interest is a tax-deductible expense.
• B) interest rates are high.
• C) dividends will lower the amount of tax due.
• D) bondholders have claims at liquidation.

---

Definitions:

Appropriate Remedy

A legal solution provided by a court to enforce a right, compensate for harm, or ensure fairness in the resolution of a dispute.

Unconscionability

A condition in contract law where an agreement is so unfairly one-sided that it is considered oppressive or shockingly unjust.

Expressly Conditional

Refers to a condition explicitly stated or formally specified, usually within a contract or legal agreement.

Interpret

To explain the meaning of something; to understand or explain something in a specific way, particularly in the context of languages, laws, or texts.