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

Question

Business

Brynn Valdez

28 January, 08:00

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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Aaron Carson · 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