Which of the Following Examples Is NOT Advantage of Good

question 5

Multiple Choice

Which of the following examples is NOT advantage of good corporate governance?

• A) Expanding the company's shareholder base
• B) Reducing perceived risks to investors
• C) Increasing the cost of capital
• D) Increased market confidence

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Definitions:

Secured Bonds

Bonds that are backed by collateral or assets, providing a higher level of security to bondholders.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a predetermined price within a specific time frame.

Retiring Bonds

Retiring bonds involves the repayment of the principal amount of the bond issue by the issuer before its maturity, often to take advantage of lower interest rates.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuer's equity shares at certain times during the bond's life, usually at the discretion of the bondholder.