External financing requires increased disclosure of the firms operations and its plans to the capital markets.

Name: External financing requires increased disclosure of the firms operations and its plans to the capital markets.
Brand: Quizplus
Rating: 5.0 (51 reviews)

Question

Quizplus · Accepted Answer

External financing, such as issuing stocks or bonds, requires companies to disclose financial information, operational details, and future plans in order to attract investors. This increased disclosure increases transparency and accountability to the capital markets.

External Financing Requires Increased Disclosure of the Firms Operations and Its