Which of the Following Is Not an Advantage of Issuing

question 85

Multiple Choice

Which of the following is not an advantage of issuing long-term debt?

• A)The stockholders do not relinquish any control.
• B)The interest is tax-deductible.
• C)The risk of becoming bankrupt is reduced.
• D)Increased earnings accrue to the stockholders.

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Definitions:

Body-Mass Index

A numerical computation comparing a person's weight and height, used to assess if they are underweight, overweight, or within a healthy weight range.

Metabolic Syndrome

A cluster of conditions including increased blood pressure, high blood sugar, excess body fat around the waist, and abnormal cholesterol levels, which occur together and increase the risk of heart disease, stroke, and diabetes.

Excessive Abdominal Fat

An unhealthy accumulation of fat in the stomach area, which is linked to increased risk of cardiovascular disease and diabetes.

Insulin Resistance

A condition in which the body's cells do not respond properly to insulin, a hormone that regulates blood sugar, leading to increased blood sugar levels.