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interest must be paid on a periodic basis regardless of earnings.

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Q: From the standpoint of the issuing company what are the Disadvantages of using bonds as a long term means of financing?
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Related questions

Is there any disadvantages to issuing shares?

By issuing shares you have sold a piece of the company to investors. Some of the disadvantages include: you will be answerable to the investors and you will have to disclose company information to them that you would have preferred your competitors didn't know.


A company that wanted to increase its capital through equity financing would most likely get involved in what?

1. A company wants to increase capital using equity financing will involve in issuing share capital to public for subscription.


Issuing shares of stock in exchange for cash is an example of?

financing activity


What is off- bank financing?

Refers to financing which does not appear on a balance sheet. For example, relatively strong corporation may guarantee the debtedness of subsidiary or a weaker company with whom it has a business relationship. The debt appears to the balance sheet of the company for which the guarantee is not recorded in the balance sheet of the issuing corporation.


When seeking long-term financing an advantage of issuing bonds over issuing common Stock is that stockholder control is not affected?

TRUE


When seeking long term financing an advantage of issuing bonds over issuing common stock is that stockholder control is not affected?

TRUE


What are the Methods of M and amp A financing?

Methods of M&A financing include cash payment, stock payment, debt financing, and a combination of these methods. Cash payment involves using cash reserves to fund the acquisition, while stock payment involves issuing shares of stock in the acquiring company to the target company's shareholders. Debt financing involves borrowing funds through loans or bonds to finance the acquisition.


What is Issuing Company?

I'm filing for unemployment and a field required is issuing company...it is on the same page asking for a personal id other than your social security. What does this mean? Issuing company???


What three forms does Equity financing come through?

selling stock,issuing bonds investment


Why do companies issue stock?

Businesses issue stock to raise capital Advantages of issuing stock: - A Company can raise more capital than it could borrow. - A Company does not have to make periodic interest payments to creditors. - A Company does not have to make principal payments. Disadvantages of Issuing Stock: - The principal owners have to share their ownership with other shareholders. - Shareholders have a voice in policies that affect the company operations. Source Qwoter.com


What is the purpose of the company issuing stocks?

To raise money that can be used to grow the company.


What is debt financing?

This is balance sheet Asset = Liabilities(or Debt) + Owners Equity (Mnemonic ALOE) To buy an asset you need money, if you have it or your parner (s) or share holders you are financing thru' equity (OE) else you issue Bonds/Notes (mostly fixed income instruments) to raise the capital thru' issuing Debt. so Debt financing is issuing Debt instrument (Like bonds) to finance the purchase of your asset