Some companies use debt or preferred stock financing instead of common stock financing.The purpose is:
A)to retain control
B)to facilitate record-keeping
C)to maintain privacy
D)to prevent audit problems

Question

Quizplus · Accepted Answer

Companies may choose to use debt or preferred stock financing instead of common stock financing in order to retain control over the decisions made within the company. By choosing to issue debt or preferred stock, the company does not dilute the ownership stake of its existing shareholders and can maintain control over operational decisions.

Some Companies Use Debt or Preferred Stock Financing Instead of Common