Why Would a Corporation Issue Bonds Payable Instead of Issuing

Multiple Choice

Why would a corporation issue bonds payable instead of issuing stock?

A) Debt is a less expensive source of capital than stock.
B) Borrowing by issuing bonds payable carries no risk to the company.
C) Debt affects the percentage of ownership of the corporation by the stockholders.
D) Debt does not have to be shown on the balance sheet.