The advantage to a corporation of issuing bonds instead of stock is that

A. Bond prices do not fluctuate.
B. The possibility of default is lower when bonds are issued.
C. The owners do not have to make interest payments on the loan.
D. The owners keep control of the company.


Answer: D

Economics

You might also like to view...

Which income distribution is more unequal and why: the income distribution in the United States or in the entire world?

What will be an ideal response?

Economics

The Sandy Deli operates near a college campus. It has been selling 325 sandwiches a day at $1.75 each and is considering a price cut. It estimates 450 sandwiches would sell per day at $1.50 each. Calculate the marginal revenue of such a price cut and the elasticity between the two points.

What will be an ideal response?

Economics

Give, and explain, an example of conflict between objectives in considering an investment proposal

What will be an ideal response?

Economics

If a firm's marginal cost exceeds its average cost, then its average cost must be rising

a. True b. False Indicate whether the statement is true or false

Economics