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

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


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