Why Would a Corporation Issue Bonds Payable Instead of Issuing

question 175

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) Debt affects the percentage of ownership of the corporation by the stockholders.
• D) Debt does not have to be shown on the balance sheet.

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Definitions:

Confounds

Variables that researchers fail to control or eliminate, which can cause a misunderstanding of the causal relationship in a study.

Operational Definitions

Clearly defined criteria or measures used to describe and quantify a concept or variable in research.

Conceptual Replicability

refers to the extent to which research findings can be confirmed or supported through studies with similar conceptual frameworks but different methods.

External Validity

Describes the extent to which research findings can be generalized or applied to settings, populations, or times beyond the scope of the original study.