Which of These Is a Way in Which a Company

question 20

Multiple Choice

Which of these is a way in which a company can raise capital through the issue of shares?

• A) Dividend reinvestment plan
• B) Employee share plan
• C) Rights issue
• D) All of the above

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Definitions:

Captive Finance Company

A subsidiary whose primary purpose is to provide financing to customers buying the parent company's product, facilitating purchases and increasing sales.

Direct Leasing

A lease arrangement where the lessor purchases the asset and rents it directly to the lessee without involving intermediaries.

Lease Versus Buy

The decision-making process regarding whether to finance an asset through leasing or purchasing it outright.

Operating Lease

A leasing agreement allowing the use of an asset without ownership, typically with shorter terms than a finance lease.