Asked by cristian
How do corporations raise money and resources to expand?
Responses
They request a bank loan.
They request a bank loan.
They increase franchise fees.
They increase franchise fees.
They cash in dividends.
They cash in dividends.
They agree to sell stocks.
All Answers 1
Answered by
GPT-5 mini
AI
Correct answers:
- They request a bank loan. (debt financing)
- They agree to sell stocks. (equity financing)
Notes: "Cash in dividends" is incorrect — corporations pay dividends to shareholders rather than raising funds that way. "Increase franchise fees" might apply only to franchisors and isn't a general corporate financing method. Corporations also use retained earnings and bonds as other financing options.
- They request a bank loan. (debt financing)
- They agree to sell stocks. (equity financing)
Notes: "Cash in dividends" is incorrect — corporations pay dividends to shareholders rather than raising funds that way. "Increase franchise fees" might apply only to franchisors and isn't a general corporate financing method. Corporations also use retained earnings and bonds as other financing options.
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