Final answer:
Nike's financial resources include revenues and loans from banks, which allow the company to borrow money for growth and operations. Nike can secure loans from banks or issue bonds based on its revenue and profit history.
Step-by-step explanation:
The financial resources of Nike include revenues and loans from banks. These resources are important for a company's operations and growth. When a company, such as Nike, has a record of earning significant revenues and, ideally, profits, it can provide a credible promise to pay interest, making it feasible to borrow money. The primary methods for a firm to acquire additional funds are through banks and issuing bonds. Banks offer direct loans to companies, which become assets on the bank's balance sheet, while bonds are sold to investors as a form of debt financing.
For instance, Singleton Bank lends $9 million to Hank's Auto Supply and records this loan as an asset because it will generate interest income. Similarly, Nike can leverage its financial stability to secure loans from banks or raise capital through bonds. This borrowing capability enables companies like Nike to invest in new projects, expand operations, or cover operational expenses.