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Consider the following statement: "Issuing bonds at a discount is bad for the issuing company." Discuss the statement and comment on its validity.
On Jun 29, 2024
The issuance of bonds at a discount is not bad (nor is the issuance of bonds at a premium good).Proceeds from a bond are determined based on prevailing rates of interest at the time the bonds are issued.When bonds are issued at a discount,the market rate exceeds the coupon rate.When bonds are issued at a premium,the coupon rate exceeds the market rate.The price at which bonds are issued simply adjusts the selling price to yield the market rate to the bondholders.
DN
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Differentiate between mechanistic structure and organic structure in organizations.
On Apr 30, 2024
Answers will vary. The amount of uncertainty in the environment influences the structural dimensions. Burns and Stalker labeled two structural extremes that are appropriate for the extremes of environmental uncertainty: mechanistic structure and organic structure. Mechanistic structure is an organizational design that emphasizes structured activities, specialized tasks, and centralized decision making. Organic structure is an organizational design that emphasizes teamwork, open communication, and decentralized decision making. The mechanistic and organic structures occupy opposite ends of a continuum of organizational design possibilities. Please see the section "Contextual Variables" for more information.