Question

Of the three major financial activities of a firm, ______ is cash raised from the issuance of new debt or equity capital.

a) Financing
b) Investing
c) Operating
d) Budgeting

Answer 1

The correct answer is Financing. It is cash raised from the issuance of new debt or equity capital.

Step-by-step explanation:

The correct answer is a) Financing. Financing is cash raised from the issuance of new debt or equity capital. It is one of the three major financial activities of a firm, along with investing and operating. Firms can raise financial capital for projects by borrowing from banks, issuing bonds, or selling stock.