Most corporations rely primarily on __________ to meet their funding needs, but these earnings may not always be sufficient to match the investment expenditures a corporation would like to make and therefore the firm needs to turn to the debt and equity markets.

Question

Quizplus · Accepted Answer

Corporations primarily use retained earnings, which are the profits not distributed to shareholders as dividends, to fund their operations and investments. When these are not enough, they seek external financing through debt (bonds) and equity (stock sales).

Most Corporations Rely Primarily on __________ to Meet Their Funding