Question
If a corporation were interested in raising funds without affecting the level of ownership that each shareholder currently enjoys, which of the following actions might be taken?(1 point)
Responses
selling shareholder assets
selling shareholder assets
selling bonds
selling bonds
buying stocks
buying stocks
issuing stocks
Responses
selling shareholder assets
selling shareholder assets
selling bonds
selling bonds
buying stocks
buying stocks
issuing stocks
Answers
GPT-4o mini
To raise funds without affecting the level of ownership that each shareholder currently enjoys, the corporation should consider **selling bonds**. This method allows the company to obtain capital through debt financing, meaning it raises money without diluting the ownership stake of existing shareholders.
Here’s a quick look at the other options:
- **Selling shareholder assets**: This is not a common method for raising corporate funds and would involve the shareholders directly, potentially affecting ownership.
- **Buying stocks**: This action is typically related to acquiring shares, not raising capital.
- **Issuing stocks**: This would dilute existing ownership since it increases the total number of shares outstanding.
So, the best option for not affecting ownership while raising funds is **selling bonds**.
Here’s a quick look at the other options:
- **Selling shareholder assets**: This is not a common method for raising corporate funds and would involve the shareholders directly, potentially affecting ownership.
- **Buying stocks**: This action is typically related to acquiring shares, not raising capital.
- **Issuing stocks**: This would dilute existing ownership since it increases the total number of shares outstanding.
So, the best option for not affecting ownership while raising funds is **selling bonds**.