Companies issue stock because of all of the following except:
A) it allows the owners to raise capital without having to borrow.
B) it allows the owners to share the risk of failure.
C) it allows the owners to turn an illiquid asset into a liquid one.
D) it allows companies to file bankruptcy.

Question

Quizplus · Accepted Answer

Companies do not issue stock to allow them to file bankruptcy. The other three choices are correct reasons why companies issue stock.

Companies Issue Stock Because of All of the Following Except