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American businesses use stock to finance about 10 percent of their external financing.

Question:

American businesses use stock to finance about 10 percent of their external financing.

Types of Financing

In business, there are numerous ways to obtain financing. Examples include:

  • Issuing stock
  • Loans from banks
  • Grants from governmental entities
  • Issuing Bonds

All of these create funding for the business. However, the majority of financing needs to eventually repaid at a later date.

Answer and Explanation:

The answer is True. This is a true statement.


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What Is Financing? - Definition & Types

from Corporate Finance: Help & Review

Chapter 8 / Lesson 7
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