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Discuss Why More Firms Are Turning to Internally Generated Funds

question 30

Essay

Discuss why more firms are turning to internally generated funds to finance new projects.


Definitions:

Asset

Resources owned by a business or individual that have economic value and can be used to meet debts, commitments, or legacies.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest in the company.

Dividends

Dividends are a portion of a company's earnings distributed to its shareholders as a reward for their investment in the company.

Expense

Money spent or costs incurred by a business in the course of generating revenues.

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