Which of the following is the most important source of financing investments for U.S.firms?

Question

Quizplus · Accepted Answer

Retained earnings are the most important source of financing investments for U.S. firms as it allows the company to reinvest profits back into the business, without having to incur interest payments or dilute ownership by issuing additional shares. While other sources such as the bond and stock market and both short-term and long-term bank debt are also commonly used for financing, they are not typically as significant as retained earnings.

Which of the Following Is the Most Important Source of Financing