Which of the Following Reasons Causes Bonds to Be a Less

question 35

Multiple Choice

Which of the following reasons causes bonds to be a less expensive form of capital for a public firm than the issuance of ordinary shares? Bondholders

• A)bear less risk than ordinary shareholders bear.
• B)have prior voting rights over ordinary shareholders.
• C)receive greater returns than ordinary shareholders.
• D)investors pay a lower tax rate on bond interest

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Definitions:

Reliable Source of Power

A dependable and consistent means of generating energy, such as renewable resources or a stable electrical grid.

Heating and Cooling Costs

Expenses related to the energy consumption used to maintain a comfortable temperature inside a building through heating in the winter and cooling in the summer.

Environmental Pollution

The contamination of the natural environment by harmful substances or energies, leading to adverse effects on living beings and ecosystems.

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The hobby or activity of observing stars and other celestial bodies for pleasure without professional equipment or knowledge.