Question

Q: The Chief Financial Officer (CFO) of a transnational company plans to build a new production site abroad. Choose all possible options for financing this new site.
A)obtain a loan from a bank
B)pay a dividend to stockholders
C) use some of the company's profits
D) issue bonds
E) obtain a loan from another company
F)sell common stock

Answer 1

Answer:

A)obtain a loan from a bank

C) use some of the company's profits

D) issue bonds

E) obtain a loan from another company

F)sell common stock

Explanation:

Financing a project refers to the process of sourcing or obtaining sufficient money to implement the project.  When a business plans a new project, it must think of where to get the finances to actualize it.

They are different sources of finances available to a business. These are the places where a company can obtain the money it requires. Paying out dividends is distributing profits to shareholders. The act of paying dividends does not bring in money but takes it away.  All the other options bring in money.