ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to raise money
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to lower their tax rate
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to improve production
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to draw high-quality workers
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Detailed explanation-1: -Corporate bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing the business.
Detailed explanation-2: -Issuing bonds is one way for companies to raise money. A bond functions as a loan between an investor and a corporation. The investor agrees to give the corporation a certain amount of money for a specific period of time.
Detailed explanation-3: -Corporate bonds are used by many companies to raise funding for large-scale projects-such as business expansion, takeovers, new premises or product development. They can be used to replace bank finance, or to provide long-term working capital.
Detailed explanation-4: -Issuing bonds offers can reduce the company’s tax liability. That’s because the interest you pay on the bonds is counted as a taxable expense, which reduces the company’s pretax profits. Shares are not classified as expenses and cannot be deducted on the company’s tax return.
Detailed explanation-5: -Government bonds promise assured returns and stability of funds to investors. They have always been an example of risk-free security. Thus, investors looking for a risk-free investment, government bonds are suitable for them.