Question

quizlit Businesses finance their operations using a mixture of ______. debt, such as issuing bonds, and equity, such as issuing stock interest and dividends capital investments, such as issuing stock and equity, such as issuing bonds debt, such as issuing stock, and borrowings, such as issuing bonds

Answer 1

Answer:

The correct answer is debt, such as issuing bonds, and equity, such as issuing stock.

Explanation:

Any of the capitals mentioned in each company has an exact measure, its deficit or excess are difficult situations that make the difference between losing or successful companies. Although when talking about financial resources, the desired situation is that they exceed the needs of the company, it is also true that if they exceed prudent levels, they fail to comply with a primary mandate of the business world: profitability, generate maximum profits with the least amount possible of assets or capital.

The sources of financing can be internal or external and at the same time have a link in the form of capital contributions or in the form of debt. Inmates refer to the ability to generate retained earnings and / or cash flows that can be reinvested in growth processes. In many cases the internal cash generation does not run at the same speed of the growth processes, this happens when the surpluses only partially cover what is required to leverage the expansion. In these cases, internal sources via capital are considered. On the other hand, the company can also resort to internal sources via labor liabilities or through provisions, which have a behavior by debt modality.