Final answer:
Conversion agents do not provide financial resources to a business; this statement is false. Businesses typically raise capital through early-stage investors, reinvesting profits, loans from banks, bonds, or selling stock.
Step-by-step explanation:
Financial resources cannot be provided to a business by conversion agents as this is false. Conversion agents are not a source of financial capital. When considering how to raise financial capital, businesses typically look towards sources such as:
- Early-stage investors, like angel investors or venture capitalists, who provide capital for a business at the start in exchange for equity.
- Generating capital by reinvesting profits back into the business.
- Borrowing through banks or issuing bonds. When well-established, firms have easier access to loans from banks.
- Selling stock in the company, which allows investors to hold equity and potentially have a say in company decisions.
Bonds are a form of long-term borrowing where the government or corporations agree to pay back the borrowed funds with interest over a period of time.