Which of the following is a reason that a corporation would prefer to issue stock instead of bonds?

Are you having trouble answering the question “Which of the following is a reason that a corporation would prefer to issue stock instead of bonds?”? If that’s the case, you don’t need to worry anymore. Azanswer has brought you the correct answer to your question.

Which of the following is a reason that a corporation would prefer to issue stock instead of bonds?

A) Dividend payments can be deducted for income tax purposes but interest payments cannot.

B) Expansion is accomplished without surrendering ownership control.

C) The risk of going bankrupt is less.

D) All of the other answer choices are correct.

Answer: C

We hope you have got the correct answer to your question “Which of the following is a reason that a corporation would prefer to issue stock instead of bonds?”, which was part of Accounting MCQs & Answers. Thanks for choosing us.