The four basic sources of long-term funds for the business firm are
A) long-term debt, common stock, preferred stock, and retained earnings.
B) current liabilities, long-term debt, common stock, and preferred stock.
C) current liabilities, long-term debt, common stock, and retained earnings.
D) long-term debt, paid-in capital in excess of par, common stock, and retained earnings.

Question

Quizplus · Accepted Answer

Long-term debt, common stock, preferred stock, and retained earnings are the primary sources of long-term funds for a business firm. Current liabilities do not provide long-term funding, and paid-in capital in excess of par is a component of common stock, not a separate source of funds.

The Four Basic Sources of Long-Term Funds for the Business