1. Sources through which funds come into the business of the firm are:
(A) Funds from operation
(B) Issue of shares and debentures
(C) Both (a) and (b)
(D) None of these
Answers
Answer:
(4) option is correct
Explanation:
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Answer:
(C) Both (a) and (b)
A firm is a commercial enterprise, a company that buys and sells products and/or services to consumers with the aim of making a profit. In the world of commerce, the term is usually synonymous with "company" or "business" because "one that runs a forex business".
A business entity such as a corporation, limited liability company, public limited company, sole proprietorship, or partnership that has products or services for sale is a firm.
As there can be many goals for the organization, let us present and summarize the organizational goals in financial terms so that we can call them financial goals.
Explanation:
What Are the Sources of Funding Available for Companies?
In order to grow their operations into new markets or areas, corporations frequently need to acquire outside finance or cash. They might use it to ward off rivals or invest in research and development (R&D). And while businesses do strive to finance these investments with revenues from current operations, it is frequently preferable to turn to outside lenders or investors.
Even though there are millions of businesses worldwide, spread across many different industries, there are only a few sources of funding that are open to all businesses. Retained profits, loan capital, and equity capital are a few of the greatest locations to seek finance. Each of these sources of money is examined in this article to see what they mean for corporations.
KEY LESSONS
- For businesses to expand and engage in new endeavors, they need to raise finance.
- Companies can raise money in three different ways: through retained earnings, borrowed capital, and equity capital.
- Companies that use retained earnings have no debt to their shareholders but can anticipate higher profits.
- By taking out loans from lenders and issuing corporate debt in the form of bonds, businesses raise debt capital.
- External investors provide equity money, which has no expenses but no tax advantages.
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