All categories

3 years ago

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by:

Business

1 answer:

eimsori [14]3 years ago

4 0

Answer:

A.selling common stock.

Explanation:

A business raises capital through debt or equity. Debts represent borrowed funds, which include bonds and loans. Equity represents the owner's funds, which comprises of shares and retained earnings.

Should a business not have enough funds for its long term needs, it can sell more shares to the existing shareholders or the general public. Shares represent ownership of the company. Selling common stock means that the company will receive the funds it requires in exchange for ownership rights. Shareholder earns dividends as a reward for providing capital to businesses.

You might be interested in

The goal of study skills and strategy instruction is to

Norma-Jean [14]

STUDY EVERYDAY AND MAKE SURE IF YOU NEED HELP ASK

3 0

3 years ago

Suppose that the marginal propensity to consume in Frugalia is 0.60. The government of Frugalia enacts a stimulus program that i

fgiga [73]

Answer:

option (c) $25 million

Explanation:

Data provided in the question:

The marginal propensity to consume in Frugalia, MPC = 0.60

Increase in spending = $10 million

Now,

The total increase in income

= $\frac{\textup{1}}{\textup{1-MPC}}$ × Increase in spending

on substituting the respective values, we get

= $\frac{\textup{1}}{\textup{1-0.6}}$ × $10 million

= $\frac{\textup{1}}{\textup{0.4}}$ × $10 million

= 2.5 × $10 million

= $25 million

Hence,

The answer is option (c) $25 million

5 0

3 years ago

You have to make a college choice by the end of the month, and you have been accepted by three schools. your parents want you to

nata0808 [166]

That would be a Pressure Stressor :)

6 0

4 years ago

Suppose you deposit $2,200 cash into your checking account. By how much will the total money supply increase as a result when t

zhannawk [14.2K]

Answer:

The money supply increases by $3300.

Explanation:

Money multiplier = 1/reserve ratio

= 1/0.4

= 2.5

the change in the money supply = deposit *multiplier -deposit

= $2,200*2.5 - $2,200

= $3300

Therefore, The money supply increases by $3300.

6 0

3 years ago

When bonds are sold at a discount, if the annual straight-line amortization amount is compared to the annual effective interest

likoan [24]

what is what is what is Sanskrit what is a what is normative Rafi what is active Rafi what is cryptography what is check to graphy what is factor graphy what is checked over of you what is 30

4 0

3 years ago