QUESTION IMAGE
Question
how do corporations raise money and resources to expand? select three answers
□ they request a bank loan.
□ they raise franchise fees.
□ they cash in dividends.
□ they agree to sell stocks.
□ they issue bonds.
Brief Explanations
To determine how corporations raise money for expansion, we analyze each option:
- "They request a bank loan": Banks provide loans to corporations for expansion, so this is valid.
- "They raise franchise fees": Franchise fees are paid to franchisors, not a way for a corporation to raise funds for itself (franchisees pay these), so this is invalid.
- "They cash in dividends": Dividends are paid out to shareholders, not a source of raising funds (it's a distribution of profits), so this is invalid.
- "They agree to sell stocks": Selling stocks (equity financing) allows corporations to raise capital from investors, valid.
- "They issue bonds": Issuing bonds (debt financing) is a common way for corporations to borrow money for expansion, valid.
So the three correct options are the ones about bank loans, selling stocks, and issuing bonds.
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A. They request a bank loan, D. They agree to sell stocks, E. They issue bonds