Asked by Sapna Rathod on Jul 20, 2024
Verified
Companies finance the purchase of assets through:
A) debt financing, the sale of bonds.
B) equity financing, the sale of stock.
C) lease financing.
D) Only a. and b. above
E) All of the above
Debt Financing
The method of funding a company's operations or expansions by borrowing money, typically through issuing bonds or taking out loans.
Equity Financing
Raising capital through the sale of shares in a company.
Lease Financing
Using lease as a means of financing to acquire the use of assets for a specified period of time without ownership.
- Understand the methods companies use to finance asset purchases.
Verified Answer
AA
ahmed alsumaitJul 21, 2024
Final Answer :
E
Explanation :
Companies can finance the purchase of assets through debt financing (such as the sale of bonds), equity financing (such as the sale of stock), and lease financing, making all the options correct.
Learning Objectives
- Understand the methods companies use to finance asset purchases.
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