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For a corporation, what are the advantages of corporate bonds over long-term loans?
Foundations of Business (MindTap C...
Solutions
Foundations of Business (MindTap C...
For a corporation, what are the advantages of corporate bonds over long-term loans?
To determine: The advantages of corporate bonds over long-term loans for a corporation.
Introduction: A corporation is an authoritative type of business that is separate from its proprietors. It is a business that is a different legitimate element from its investors. A stock is a common word used to portray the proprietorship statements of any business. A share, then again, alludes to the stock declaration of a specific organization.
Explanation of Solution
The advantages of corporate bonds over long-term loans for a corporation are as follows:
Corporations sell securities to acquire a ton of cash from a variety of bondholders and to collect bigger measures of cash than could be obtained from one lender...
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