XYZ Corporation plans to open a manufacturing plant in China, but the company has not retained any of its yearly profits for this purpose. How will XYZ Corporation likely raise the money to finance its offshore expansion?

Question

Quizplus · Accepted Answer

The sale of bonds to institutional investors is a common method for corporations to raise large amounts of capital for expansion projects, such as opening a manufacturing plant. This allows the company to borrow money from investors with the promise of repaying it with interest at a later date.

XYZ Corporation Plans to Open a Manufacturing Plant in China