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Describe how a firm can generate funds internally to grow and expand?
Wiki User
∙ 11y ago
Funds are generated internally through net income that is retained to fund growth rather than paid out in dividends. There also measures that can be taken to improve working capital to free up funds, such as more aggressive collection of receivables and negotiating longer terms with vendors for payables.
Wiki User
∙ 13y ago
Wiki User
∙ 11y agoFunds are generated internally through net income that is retained to fund growth rather than paid out in dividends. There also measures that can be taken to improve working capital to free up funds, such as more aggressive collection of receivables and negotiating longer terms with vendors for payables
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Less developed countries generate funds to promote development through?
Bartering with urban residents
How does competition for financing determine how resource are allocated in the market economy?
Competition for financing determines how resources are allocates in the market economy by having the lending institution make the final decision regarding lending the business the funds to expand.
How do companies raise funds to expand their business?
Companies raise funds by selling stock shares to the public, getting bank loans, and selling bonds to the public. Also, if they can place their companies on one of the major stock exchanges, it improves their chances to all of the methods that were covered by the first contributor. The favored exchange would be the N. Y. Stock Exchange.
Why is the stock market important to today's economy?
The stock market indicates the strength of the economy. For instance, if stock values are high it indicates strength in the economies. In addition, the stock market also helps companies to raise funds necessary to expand their developments!
Do high tax rates slow the economy?
Generally speaking high tax rates take funds out of the private sector. A high tax burden leaves the private economy with less funds in invest in new technologies and to expand their growth. On an individual basis high tax rates leave people with less discretionary funds to make consumer purchases. These could be "big ticket items" such as new cars or smaller purchases that must now be delayed because of less money in the hands of the consumer.
In case of internally generated funds the opportunity cost to the firm is?
lendind rate
When a business obtains funds to expand or develop new products it is what?
generating ideas
Why is Bangladesh unable to use the Ganges and the Brahmaputra rivers to generate hydroelectricity?
Lack of funds.
Do corporations rely more on external or internal funds as sources of financing?
Sixty percent of corporations through the selling of new securities uses external funds as sources of financing whereas only forty percent of funds are raised internally.
Less developed countries generate funds to promote development through?
Bartering with urban residents
Why do stocks sell shares?
Stocks don't sell shares, companies do. They do do to generate funds in IPOs.
What activities provide the necessary funds to start a business and expand it after it begins operation?
Financing Activities
What is a special situation fund?
aka "Sector Funds". Many are non diversified and generate little or no income.
Is cash a source or use of funds?
Answer:Cash is funds. When activities generate cash, it is said these activities are a source of funds. And, if the activities use up cash, it is a use of funds. Note: in the 'Funds flow statement', working capital is used as a measure of funds, which is a broader definition of funds than cash. For example, working capital increases when inventory increases, but cash would remain unchanged.
What are the differences in China and America's mutual funds?
The differences in China and America's mutual funds vary from which year you are looking at. Without the actual year to be specific it is hard to actually generate a number.
What is trade on equity?
A company may raise funds either by issue of shares or by debentures. Borrowing funds to increase capital investment with the hope that the business will be able to generate returns in the excess of the interest charges.
Describe the investment option and its specific characteristics of closed end funds?
poopie turds
