1. what two major sources of a company financing are reflected on the balance sheet? a)...
1. what two major sources of a company financing are reflected on the balance sheet?
a) borrowing, preferred stock
b) common stock, preferred stock (I know it is not this one)
c) venture capital, borrowing
d) public financing, private financing
Homework Answers
Answer is d) public financing, private financing
Public financing refers to the funds raised from public. The common way of raising funds from public are through common stock, preferred stock, bonds payable. Private financing financial refers to the funds raised through specific parties like long term loans from bank, private placement of equity. a) is not the answer because common stock is not included. Venture capital is only for start ups and not for established firms. Hence answer is d)
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1. what two major sources of a company financing are reflected
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