Which of the Following Is Not an Option Available to a General

question 49

Multiple Choice

Which of the following is not an option available to a general partnership seeking capitalization?

• A) borrowing money from one or more of the partners
• B) selling the right to a percentage of the profits to an investor
• C) selling ownership rights through the public markets
• D) borrowing money from a commercial lender

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Definitions:

Cash Flow To Creditors

The amount of cash a company pays to its creditors and bondholders, indicating the flow of cash intended to cover debts.

Operating Cash Flow

Operating cash flow is a measure of the cash generated by a company's normal business operations, indicating its ability to cover operating expenses and invest in its business.

Net New Borrowing

The difference between the total amount of debt a company takes on and the amount it repays within a specific period, indicating the net increase in debt.

Net Capital Spending

The total expenditure on fixed assets less any sales of fixed assets, measuring a company's investment in its physical assets.