Following the ﬁnancial crisis of 2007, companies in the UK had shifted to using _____ to ﬁnance mergers and acquisitions.
A) cash from money markets
B) borrowings from banks
C) subsidized funding from the central bank
D) share-based equity ﬁnancing

Question

Quizplus · Accepted Answer

After the financial crisis of 2007, many companies found it difficult to secure loans from banks due to tighter lending standards and an overall reduction in available credit. As a result, there was a noticeable shift towards using share-based equity financing for mergers and acquisitions, as it became a more viable and sometimes necessary option for companies looking to expand or consolidate without increasing their debt levels.

Following the ﬁNancial Crisis of 2007, Companies in the UK