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)

Question

Responses

selling shareholder assets
selling shareholder assets

selling bonds
selling bonds

buying stocks
buying stocks

issuing stocks

Answer 1

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.