Which of the following is not a disadvantage of raising capital by selling ordinary shares?...

70.2K

Verified Solution

Question

Accounting

Which of the following is not a disadvantage of raising capital by selling ordinary shares?

a. The transaction costs are usually higher that raising other forms of finance

b. Dividends cannot be used to reduce taxable profit

c. Collateral has to be offered to potential shareholders

d. The current shareholders may face a loss of control over the direction of the firm

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students