Tax laws in most countries are such that companies are encouraged to use loan facilities / bonds because interest payments are deductible.
What do companies have an incentive to use?
In most nations, the interest payments that a company makes on loans and bonds are removed from taxes.
This reduces the tax liability of a company which encourages them to use more loan facilities and bonds knowing that they would pay less in taxes.
Find out more on bond payments at https://brainly.com/question/1023268.
