A Company Can Pay for Its Expansion in All the Following

question 16

Multiple Choice

A company can pay for its expansion in all the following ways except:

• A) by using the earnings generated from its sale of obsolete equipment.
• B) by persuading a director's mother to make a personal loan to the company.
• C) by purchasing bonds in the secondary market.
• D) by plowing back part of its profits.

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Definitions:

Representative

An individual who acts on behalf of another person or group, often in a professional context to express or defend interests.

Reliable

Describes something or someone that consistently performs or behaves in a predictable and dependable manner.

Valid

Something that is logically sound, well-founded, or acceptable as per current laws or principles.

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