When a Firm Wants to Borrow Directly from the Public

question 156

True/False

When a firm wants to borrow directly from the public to finance the purchase of new equipment, it does so by selling shares of stock.

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Definitions:

Physiological Needs

Basic human necessities required for survival, such as air, food, water, shelter, and sleep, according to Maslow's hierarchy of needs.

Safety Needs

In Maslow's hierarchy of needs, these are the requirements for personal security, financial stability, health, and safety against accidents and harm.

Systems/Contingency Organization

An approach to management that suggests organizations are best managed when structures are adapted to external conditions and specific situations.

Virtual Organization

A network of remotely collaborating individuals or groups not bound by traditional physical office space, often relying on digital communication.