Which of the Following Is a True Statement About Raising

question 8

Multiple Choice

Which of the following is a True statement about raising capital?

• A) All capital is raised through formal sources.
• B) All capital is raised through debt sources.
• C) Capital is easy to get.
• D) It often takes a great deal of time to raise capital.

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Definitions:

Operating

Refers to the activities and processes carried out by a company in its day-to-day business to generate income, excluding investing and financing activities.

Nonoperating

Items on a financial statement that are unrelated to the core operations of the business, such as investment income or losses.

Financial Activities

Transactions related to the financing of a company, including issuing debt, repaying debt, equity financing, and paying dividends.

Financing Activities

Cash flow activities that result in changes in the size and composition of the equity capital and borrowings of an entity.