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How can a company raise money to grow?

A It can trade its stock on the New York Stock Exchange.

B It can purchase its stock from its stockholders.

C It can issue an IPO.

D It can pay off its debts.

User Ynkr
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2 Answers

8 votes

Final answer:

A company can raise money to grow by issuing stock, borrowing from a bank or issuing bonds, or paying off its debts.

Step-by-step explanation:

The primary method a company can use to raise money to grow is by issuing stock. By selling ownership shares of the company to the public, the company can access large amounts of financial capital for expansion without worrying about repaying the money. However, issuing stock is expensive and requires compliance with reporting requirements to shareholders and government agencies.

Another way a company can raise money to grow is by borrowing from a bank or issuing bonds. While these methods allow the company to maintain control of its operations and not be subject to shareholders, they do require the company to commit to scheduled interest payments, whether or not it has sufficient income.

A company can also raise money to grow by paying off its debts. By reducing its debt burden, the company can free up more capital to invest in its growth.

User Jlesuffleur
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5.0k points
6 votes

Answer: It can pay off its debts.

Step-by-step explanation:

User John McCollum
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