Need a reply back for this and to understand what would be better a to sell stock or to issue bonds? Referred or common?

Identify your (fictitious) company and the project you have planned.

My fictitious company is a restaurant and the project I have planned is an expansion of the business by adding on a new edition.

Are there any advantages to issuing bonds over stocks? Identify one advantage.

A bond is a guarantee of a debt between two parties with interest until the obligation is paid by a certain date. The advantages of issuing bonds over stock is no additional ownership interest in the corporation and bonds are tax deductible on the corporation income tax returns.

Are there any advantages to selling stocks instead of issuing bonds? Identify one advantage.

Stocks are shares of a company. The advantages to selling stock instead of issuing bonds is there is no new debt and If the company fails the shareholder take the same loss as the original owner.

Would you sell stock in your company or would you issue a bond? Explain your decision.

I would sell stock in the company because It would eliminate any new debts to the corporation and the responsibility of the success or failure of the company would not solely be on me verses a bond. People tend to have a greater interest in a company if they have to share the responsibility of finances.

Now, imagine you sell the stock. Would you issue common stock or preferred stock? Why?

I would issue common stock because it allows share holder to participate in the growth of the corporation, less monetary rights, and can vote on issues like electing the board of director.