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प्रश्न
From the view point of the company mention two disadvantages of raising money by the issue of shares.
लघु उत्तरीय
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उत्तर
- Dilution of Control: Issuing new shares reduces the control of existing owners, as shareholders get voting rights and influence in the company’s decisions.
- Dividends Are Not Tax-Deductible: Unlike interest on loans, dividends paid to shareholders are not tax-deductible, which can increase the company’s tax burden.
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