Which of the following allows a company to generate long-term funding from within the organization?
A) Long-term loans
B) Equity financing
C) Debt financing
D) Market capitalization
E) Stock splits

Question

Quizplus · Accepted Answer

Equity financing allows a company to generate long-term funding by selling ownership shares within the organization. This means the company is not incurring debt or interest payments, but rather leveraging investments from shareholders to fund growth and operations. Long-term loans and debt financing would require the company to make regular interest payments and repay the principal over time. Market capitalization and stock splits are not methods of generating funding.

Which of the Following Allows a Company to Generate Long-Term