What is generally the reason for a company to issue bonds?

A) It promotes good will with the public.

B) It serves as a means to raise revenue.

C) It raises the value of their stock for the stockholders.

D) It prevents them from having to reveal their financial statements

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22 August, 03:29

What is generally the reason for a company to issue bonds?

A) It promotes good will with the public.

B) It serves as a means to raise revenue.

C) It raises the value of their stock for the stockholders.

D) It prevents them from having to reveal their financial statements

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Answers (1)

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Marcus Blanchard · Answer 1

The answer to the question is B - It serves as a mean to raise revenue.

A bond basically works as a loan from an investor to a corporation. An investor agrees to loan the specified amount to a corporation. In return the corporation repays the investor back over a set amount of time and pays a specified interest rate.

What is generally the reason for a company to issue bonds?A) It promotes good will with the public.B) It serves as a means to raise revenue.C) It raises the value of their stock for the stockholders.D) It prevents them from having to reveal their financial statements

What is generally the reason for a company to issue bonds?

A) It promotes good will with the public.

B) It serves as a means to raise revenue.

C) It raises the value of their stock for the stockholders.

D) It prevents them from having to reveal their financial statements