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:

Glial Cells

Glial cells, also known as glia, are supportive cells in the nervous system that do not conduct nerve impulses but are critical for the support, nourishment, and protection of neurons.

Action Potentials

Rapid and temporary electrical charges that travel along the membrane of a neuron, facilitating nerve impulse conduction.

Stimulation

The encouragement of something to increase activity, interest, or enthusiasm, or the process of applying a stimulus.

Intensity

The degree of strength, force, or brightness of a stimulus or action.