Asked by Ashley Minaya on Jun 13, 2024
Verified
The essence of finance is the process of raising capital (money), exclusively through the sale of bonds.
Raising Capital
The process by which a firm obtains money or funds to finance its operations, expansion, or investments.
Bonds
Bonds are fixed income instruments representing a loan made by an investor to a borrower, typically corporates or governments, which pay periodic interest payments and return the principal at maturity.
- Comprehend the reasons and methods firms use to raise capital.
Verified Answer
VA
Venkata Adithya GodishalaJun 17, 2024
Final Answer :
False
Explanation :
Finance is the process of raising capital (money) through various methods, not just through the sale of bonds. Other methods include equity financing, bank financing, and alternative financing options like crowdfunding.
Learning Objectives
- Comprehend the reasons and methods firms use to raise capital.