Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The company sold its newly issued stock and was able to amass a sizable amount of money to invest. Which of the following sources of long-term funds is being used by Merith Qin in the given scenario?
A) Direct investments from owners
B) Long-term debt
C) Corporate bonds
D) Term loans

Question

Quizplus · Accepted Answer

Merith Qin is using direct investments from owners by selling newly issued stock, which is a form of equity financing and a source of long-term funds.

Merith Qin, a Textile Company, Relies on Self-Funding in Order