Question

Of the three major activities of a firm, cash raised from the issuance of new debt is known as:

Answer 1

Cash raised from the issuance of new debt is known as borrowing money or issuing bonds.

Step-by-step explanation:

Cash raised from the issuance of new debt is known as borrowing money or issuing bonds. When a firm borrows money from a bank, it commits to scheduled interest payments, while issuing bonds involves selling off ownership of the company to the public.