Question

Which of the following is one way a corporation can raise money

Answer 1

One of the key differences between franchising and chain stores is the amount of risk involved. When a company chooses to expand with chain stores, it assumes all of the risk on its own. It funds the entire expansion project. By comparison, when a company franchises, it passes some of the risk onto other investors. Franchising represents less risk for the parent company, but it shifts the risk to the franchisee.

Answer 2

Selling stock on the stock market is a common method for corporations to raise capital.

How corporations raise money

When a corporation decides to "go public," it offers a portion of its ownership (shares or stocks) to the public through an initial public offering (IPO) on a stock exchange such as the New York Stock Exchange (NYSE) or NASDAQ. Interested investors purchase these shares, effectively becoming partial owners of the company.

Through this process, the corporation receives funds from the sale of these shares to investors. This influx of capital can then be used by the company for various purposes, such as expanding operations

Question

Which of the following is one way a corporation can raise money

by buying bonds from other corporations

by demanding money from the government for research and development

by selling stock on the stock market

by giving shares to the founders