Spontaneous sources of financing implies
A)that funding arises automatically in the course of business.
B)that management has autonomy.
C)that management has discretion on spending.
D)that the markets are amenable to share offerings.

Question

Quizplus · Accepted Answer

Spontaneous sources of financing refer to financing that arises automatically in the course of business without any specific management action to raise funds. These sources of financing include trade credit, accruals, and deferred payments, which do not require any external fund-raising efforts. Option B, C and D are incorrect as they do not accurately describe spontaneous sources of financing.

Spontaneous Sources of Financing Implies