A start-up company is, on net, acquiring funds from outside the company through the issuing of new securities, including both stocks and bonds. This company's cash flow for / from financing from this transaction will:
A) be zero.
B) be positive.
C) be negative.
D) not be affected.

Question

Quizplus · Accepted Answer

When a company issues new securities, such as stocks and bonds, it is raising funds from external sources. This inflow of cash increases the company's cash flow from financing activities, making it positive.

A Start-Up Company Is, on Net, Acquiring Funds from Outside