Question

Nancy has decided to raise working capital for her upscale boutique business which currently has 4 locations and is considering franchising the concept in the next few years. Because of the current company organization and anticipated future plans, the most likely form of financing would be ________.

Answer 1

Answer:

public sale

Explanation:

In business, a public sale happens when a company decides to issue shares and sell them on a stock exchange.

In this case, since Nancy's business is planning to expand its activities it has two options:

1. issue new stock, if she is going to do it for the first time it would be an IPO.
2. get a loan from a bank, but maybe she wouldn't be able to get a large enough loan.

To safest way to raise capital would be to issue stock.