Corporations choose to issue bonds for any of the following reasons, EXCEPTMultiple Choiceto improve financial leverage.to finance a corporations ongoing activities.to reduce the taxes to be paid to federal and provincial governments.if it is difficult to sell stocks.as an investment for their earnings.

Fill in the Blank QuestionFill in the blank question.One advantage of selling bonds for a corporation is that the use of funds can be used to increase the corporation's on .

Fill in the Blank QuestionFill in the blank question.From a corporation's perspective, bonds have disadvantages of asset claims and interest payments because both of these are .

Multiple Select QuestionSelect all that applyWhich of the following are reasons why corporations sell bonds?Multiple select question.They want to abide by federal regulations.They use interest as a tax break.They need money to finance ongoing activities.They find it difficult to sell stock.They don't like meeting stock requirements outlined in the stock selling index.

An advantage of bonds is:Multiple ChoiceBonds require payment of par value at maturity.Bond payments can be burdensome when income and cash flow are low.Bonds require payment of periodic interest.Bonds do not affect owner control.Bonds can decrease return on equity.

Fill in the Blank QuestionFill in the blank question.A person may prefer bonds over stocks because the bond payments are guaranteed.