The Advantages of Obtaining Long-Term Funds by Issuing Bonds,rather Than

question 29

Multiple Choice

The advantages of obtaining long-term funds by issuing bonds,rather than issuing additional common stock,include which of the following?

• A)Funds are obtained without surrendering ownership control.
• B)Interest expense is tax-deductible.
• C)The company's default risk decreases.
• D)a.and b.

---

Definitions:

Job Structure

The hierarchical arrangement of jobs within an organization that illustrates the comparative levels of responsibility, skill requirements, and the relationship between various jobs.

Pay Level

The average amount of compensation or salary given to employees in a certain position or job category.

Pay Structure

The system or arrangement outlining how employees are compensated, including salary ranges, grades, and levels, based upon their role, experience, and performance.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.