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If a Small Business Opts Not to Borrow from a Commercial

question 52

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If a small business opts not to borrow from a commercial bank,then what is probably its next best alternative?


Definitions:

Stock Dividend

A distribution of extra shares to shareholders, as opposed to a cash payment, as a form of dividend.

Common Stock

A type of equity security that represents ownership in a corporation, usually carrying voting rights and potential dividends.

Consolidation Process

The procedure of combining the financial statements of two or more entities into one, usually for a parent company and its subsidiaries.

Outstanding Bonds

Bonds issued by a company or government that are currently held by investors and have not yet matured or been redeemed.

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