Question

When a corporation needs a larger amount of money than is possible by borrowing from one lender, or it does not want to borrow it all from one lender, which of the following might it use?

A) Trade Credit
B) Equity Financing
C) Syndicated Loan
D) Commercial Paper

Answer 1

Equity financing is a method that a corporation can use to raise a larger amount of money when borrowing from one lender is not feasible. It involves selling off ownership of the company to the public and becoming responsible to a board of directors and the shareholders.

Step-by-step explanation:

When a corporation needs a larger amount of money than is possible by borrowing from one lender or it does not want to borrow it all from one lender, it might use equity financing. Equity financing involves selling off ownership of the company to the public and becoming responsible to a board of directors and the shareholders. This allows the corporation to raise a larger amount of money by issuing stock.