Key differences between common stock and bonds include all of the following EXCEPT
A) common stockholders have a voice in management; bondholders do not.
B) common stockholders have a senior claim on assets and income relative to bondholders.
C) bonds have a stated maturity but stock does not.
D) interest paid to bondholders is tax-deductible but dividends paid to stockholders are not.

Question

Quizplus · Accepted Answer

All of the options are key differences between common stock and bonds, except for B. It is actually the opposite - bondholders have a senior claim on assets and income relative to stockholders.

Key Differences Between Common Stock and Bonds Include All of the Following