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 is not a source of funds, but rather a potential outcome of successful R&D activities. The other options listed (loans from banks/bondholders, retained earnings, and venture capital/personal savings) are all viable sources of funding for R&D.

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