Ask Question
BusinessBusiness
6 April, 07:49

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by:

A. selling common stock.

B. petitioning the government for a loan.

C. purchasing additional assets.

D. decreasing their accounts payable

+2
Answers (1)
  1. 6 April, 09:38
    0
    A. selling common stock.

    Explanation:

    A business raises capital through debt or equity. Debts represent borrowed funds, which include bonds and loans. Equity represents the owner's funds, which comprises of shares and retained earnings.

    Should a business not have enough funds for its long term needs, it can sell more shares to the existing shareholders or the general public. Shares represent ownership of the company. Selling common stock means that the company will receive the funds it requires in exchange for ownership rights. Shareholder earns dividends as a reward for providing capital to businesses.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by: A. selling common ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What is a major difference between strategic philanthropy and cause-related marketing?
Answers (1)
Xiong Co. uses a periodic inventory system. Its records show the following for the month of May, in which 65 units were sold.
Answers (1)
The baldwin company has just issued $7,235,640 in dividends last year. the effect of this payment on the balance sheet is
Answers (1)
A person who is skilled at performing calculations has math skills for advanced analysis and has organizational skills would be best suited to work as
Answers (1)
Luker Corporation uses a process costing system. The company had $164,500 of beginning Finished Goods Inventory on October 1. It transferred in $841,000 of units completed during the period.
Answers (1)
New Questions in Business
ABC Company just started business in August. They made the following purchases during August: August 01 300 units $1,560 total cost August 12 400 units 2,340 total cost August 24 400 units 2,520 total cost August 30 300 units 1,980 total cost A
Answers (1)
1. During the Middle Ages, courtly love was embodied in the behavior of a knight toward the fine lady he loved. He would prostrate himself before her, idealize her, carry her favor into battle, but never demonstrate physical love for her.
Answers (1)
Northern Illinois Company expects to sell 36,000 units of finished goods over the next 6-month period. The company has 12,000 finished units on hand and its managers want to have 14,000 units on hand at the end of the period.
Answers (1)
Sally's Sod Inc. provides lawn maintenance and has two different packages: Standard and Deluxe. Selected data related to each package is as follows: Standard Deluxe Contribution margin per package $40 $120 Direct labor hours per package 2 3 For the
Answers (1)
The traditional business model of accounting is inadequate for governments and not-for-profit organizations primarily because businesses differ from governments and not-for-profit organizations in that
Answers (1)
Home » Business » When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by: A. selling common stock. B. petitioning the government for a loan. C. purchasing additional assets. D.
Sign Up Forgot Password?