Firms have several sources of funds to finance their R&D activities, including the following, except
A)loans obtained from banks and bondholders.
B)retained earnings or corporate savings.
C)venture capital and personal savings.
D)anticipated profits from forthcoming new products.

Question

Quizplus · Accepted Answer

Anticipated profits from forthcoming new products are not a direct source of funds; they are future expectations and cannot be used currently to finance R&D activities. Other options represent actual sources of funds that can be utilized immediately.

Firms Have Several Sources of Funds to Finance Their R&D