Final answer:
The method that is not a sustainable way for businesses to raise capital is tax refunds. Sustainable ways include selling shares, borrowing from lenders, and reinvesting profits.
Step-by-step explanation:
All of the following are sustainable methods businesses can use to raise capital (funding) except for tax refunds. Sustainable methods to raise capital include: a) selling ownership shares, such as stock, which gives investors partial ownership in the company; c) borrowing from lenders, which can be through banks or issuing bonds, implying a repayment with interest; and d) profitable operations, where a company can reinvest its profits back into the business. Tax refunds, while they may provide a cash influx, are not a method of raising capital but rather a return of overpaid taxes.
When establishing a firm, acquiring early-stage financial capital is crucial. This can come from personal savings of the owners or managers, credit cards, or from private investors like angel investors and venture capital firms. Moreover, established firms often rely on their own profits as a primary source of financial capital. They may reinvest their earnings into various aspects of their business like equipment, structures, and research and development projects.