A firm can fund an expansion of its operations by

Question

Quizplus · Accepted Answer

Issuing bonds is a way to raise capital to fund an expansion of operations. Bonds allow the firm to borrow money from investors, with a promise to pay back the principal plus interest at a future date. This can be a more cost-effective option than selling equity (buying stock) or taking out a loan, as interest rates on bonds are typically lower than on loans. Paying dividends and bonuses are not funding options, but rather ways for the firm to distribute profits to shareholders and employees, respectively.

A Firm Can Fund an Expansion of Its Operations by