Question

What are the four ways funds can be obtained by the Disbursing Officers?

Answer 1

Firms can obtain funds through four main ways: early-stage investors, reinvesting profits, borrowing through banks or bonds, and selling stock.

Step-by-step explanation:

Firms can obtain funds through four main ways:

1. Early-stage investors: Firms can secure financial capital by attracting investors who provide funds in exchange for a share in the ownership and potential profits of the business. These investors are typically involved in the early stages of a company's development.
2. Reinvesting profits: Firms can allocate a portion of their profits back into the business to fund future projects or expansion. This allows the business to retain ownership and control over its operations.
3. Borrowing through banks or bonds: Firms can borrow money from banks or issue bonds to raise capital. They must repay the borrowed amount along with interest over a specified period.
4. Selling stock: Firms can raise funds by issuing and selling shares of their stock to the public. This grants ownership in the company to shareholders and makes the business responsible to a board of directors.