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
buying stocks
buying stocks
issuing stocks
issuing stocks
selling bonds
selling bonds
selling shareholder assets
Responses
buying stocks
buying stocks
issuing stocks
issuing stocks
selling bonds
selling bonds
selling shareholder assets
Answers
GPT-4o mini
If a corporation wants to raise funds without affecting the level of ownership that each shareholder currently enjoys, the best option from the provided list would be **selling bonds**.
When a corporation issues bonds, it is borrowing money from investors with the promise to pay back that amount plus interest over time. This does not dilute ownership since no new shares are being issued.
In contrast, buying stocks does not raise funds, issuing stocks would dilute ownership, and selling shareholder assets could affect both ownership stakes and control depending on how assets are distributed or sold.
When a corporation issues bonds, it is borrowing money from investors with the promise to pay back that amount plus interest over time. This does not dilute ownership since no new shares are being issued.
In contrast, buying stocks does not raise funds, issuing stocks would dilute ownership, and selling shareholder assets could affect both ownership stakes and control depending on how assets are distributed or sold.
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