Final answer:
Asset-financing plans are typically aimed at securing funds for purchasing new assets, and companies may choose to finance through debt or equity, impacting control over the company and cash flows.
Step-by-step explanation:
The purpose of an asset-financing plan developed by Guardian Inc. could be any of the following depending on the company's strategic objectives: 1) To secure funding for purchasing new assets, 2) To liquidate existing assets, 3) To reduce the company's debt, 4) To increase the company's cash flow. However, typically, such a plan is more aligned with securing funding for asset acquisition or expansion efforts.
Companies can raise financial capital using various means like early-stage investors, by reinvesting profits, 3. borrowing through banks or bonds; and 4. selling stock. When companies invest in financial assets, they must carefully weigh the risk and return factors to make judicious investment decisions.
When a company needs additional capital, it must decide between debt financing, which involves interest payments and keeping full control of the company's operations, versus equity financing, which involves issuing stock and sharing ownership with public shareholders. This may affect not only the company's cash flow but also how decisions are made within the company, highlighting the crucial balance between financial growth and control.