Final answer:
Firms can raise financial capital through early-stage investors, reinvesting profits, borrowing through banks or bonds, and selling stock.
Step-by-step explanation:
Firms often make decisions that involve spending money in the present and expecting to earn profits in the future. Examples include when a firm buys a machine that will last 10 years, or builds a new plant that will last for 30 years, or starts a research and development project. Firms can raise the financial capital they need to pay for such projects in four main ways: from early-stage investors, by reinvesting profits, by borrowing through banks or bonds, and by selling stock. When business owners choose financial capital sources, they also choose how to pay for them.