6
QuizMultiple Choice

Business Structures — Quiz

Question 6 • Personal Finance and Economics

How do corporations raise money and resources to expand?

Answer
A
They cash in dividends.
B
They request a bank loan.
C
They agree to sell stocks.
D
They increase franchise fees.

Explanation

Corporations can raise money by selling shares of ownership, called stock, to investors. The money from those sales can fund expansion, such as opening facilities or buying equipment. A bank loan also provides funds, but selling stock is the choice that describes raising capital from investors.

AI-written and checked against the verified answer.

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