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:

Oral Testimony

A form of evidence provided verbally by a witness, often under oath, in a legal proceeding.

Terrace Garden

A garden style or method where plants, flowers, or crops are grown in stepped, raised beds or terraces, often used in hilly or slope areas to manage space effectively.

Written Agreement

A formal, documented contract that outlines the terms and conditions agreed upon by the parties involved.

Enforceable

Refers to something, especially an agreement or contract, that is legally recognized and can be upheld in a court of law.