All of the Following Are Advantages of Issuing Stock Except

question 13

Multiple Choice

All of the following are advantages of issuing stock except:

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

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Definitions:

Validity Effect

A phenomenon where a statement is more likely to be perceived as true the more it is repeated, regardless of its actual veracity.

Repeated Statements

The act of saying or presenting the same information multiple times to reinforce a message or ensure understanding.

Altruism

The belief in or practice of disinterested and selfless concern for the well-being of others.

Selfless Action

An act performed with no expectation of reward or recognition, often motivated by a desire to help or benefit others.