Card 95 / 100: Explain why companies might want to raise outside funds, rather than financing any desired spending out of profits.
Answer:
A company might see an opportunity that it needs to seize quickly. For example, if a company thinks it can double its profits by building another $10 million factory, but only has $1 million in net income each year, it may want to raise the needed money from outsiders rather than wait (at least) ten years before expanding. Sample Partial Credit Answer A company thinks it can make more money.
Previous Card | ← Previous Card Button |
Next Card | → Next Card Button |
Flip Card | Space-Bar |
|