A new or an existing company may be financed by:<\/p>\n\n\n\n
debt only by law
U.S. Treasury bonds
debt and equity and U.S. Treasury bonds
debt and equity
equity only by law<\/p>\n\n\n\n
The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n A new or existing company may be financed primarily through debt and equity<\/strong>. These are the two fundamental sources of funding for businesses.<\/p>\n\n\n\n Debt financing involves borrowing money that must be repaid over time with interest. This can come from:<\/p>\n\n\n\n Debt financing allows companies to retain full ownership while obtaining necessary funds. However, excessive debt can lead to financial strain due to interest payments and repayment obligations.<\/p>\n\n\n\n Equity financing involves raising capital by selling ownership stakes (shares) in the company. Sources include:<\/p>\n\n\n\n Unlike debt, equity financing does not require repayment, but it dilutes ownership and control of the company.<\/p>\n\n\n\n U.S. Treasury bonds are issued by the U.S. government<\/strong> to fund federal expenses, not by companies. Businesses cannot issue or finance themselves through these bonds.<\/p>\n\n\n\n There are no laws restricting companies to finance themselves exclusively through debt or equity. Most businesses use a mix of both to optimize financial stability and growth potential.<\/p>\n","protected":false},"excerpt":{"rendered":" A new or an existing company may be financed by: debt only by lawU.S. Treasury bondsdebt and equity and U.S. Treasury bondsdebt and equityequity only by law The correct answer and explanation is : Correct Answer: Debt and Equity A new or existing company may be financed primarily through debt and equity. These are the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-202720","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/202720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=202720"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/202720\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=202720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=202720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=202720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Correct Answer: Debt and Equity<\/strong><\/h3>\n\n\n\n
1. Debt Financing<\/strong><\/h4>\n\n\n\n
\n
2. Equity Financing<\/strong><\/h4>\n\n\n\n
\n
Why Not U.S. Treasury Bonds?<\/strong><\/h4>\n\n\n\n
Why Not “Debt Only” or “Equity Only” by Law?<\/strong><\/h4>\n\n\n\n