Which of the Following Is NOT an Advantage of Issuing

question 194

Multiple Choice

Which of the following is NOT an advantage of issuing bonds instead of common stock?

• A) Taxable net income is reduced
• B) Earnings per share of common stock may be lower
• C) Stockholder control is not affected
• D) Income to common stockholders may increase

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Definitions:

Job Context

The environmental and situational factors surrounding a job, including physical conditions, work tasks, and the social and organizational setting, which affect an employee's performance and satisfaction.

Job Content

The specific duties, tasks, and responsibilities that make up an individual's job role.

Acquired Needs Theory

A psychological theory that suggests human needs can be acquired or learned through life experiences.

Need For Power

A psychological drive that expresses itself in the desire to control or influence others.