When a Firm Wants to Borrow Directly from the Public

question 156

True/False

When a firm wants to borrow directly from the public to finance the purchase of new equipment, it does so by selling shares of stock.

---

Definitions:

Prestige Products

High-quality items that are regarded as status symbols, often marketed to appeal to consumers' desires for luxury and exclusivity.

Shopping Products

Products that consumers purchase less frequently and tend to compare on criteria such as quality, price, and style before making a decision.

Limited Distribution

A strategic choice by a company to offer its products or services at a select few outlets, often to maintain exclusivity or control over the brand image.

Marchesa Wedding Gown

A high-end bridal dress designed by the luxury fashion brand Marchesa, known for its elegant and elaborate designs.