Ask Question
BusinessBusiness
30 September, 02:25

Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The company sold its newly issued stock and was able to a mass a sizable amount of money to invest. What sources of long-term funds is being used by Merith Qin in the given scenario

+5
Answers (1)
  1. 30 September, 02:33
    0
    Direct Investments from Owners

    Explanation:

    Self funding refers to a corporate's financing it's projects by use of it's own funds in the form of retained profits or raising money internally i. e from existing shareholders.

    Issue of stock is one of the modes of raising long term finance by a corporate. The other forms being debt, preference stock or deposits. Long term finance refers to money required to finance big projects requiring heavy investments and spread over a long period of time say 5 to 10 years.

    In the given case, the company sold it's newly issued stock and amassed a considerable amount of money. In this case, the stock must've been issued to existing stockholders and thus money raised from existing owners.

    Hence this source of raising long term finance is direct Investment from owners i. e stockholders.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The company sold ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A. The menu prices at restaurants in New Buffalo, Michigan, a small lakeside town, increase during the summer months and decline starting November 1. B.
Answers (1)
An example of an institutional coi is: the organization gives scholarships to some post-doctoral researchers an industry sponsor pays for the construction of a new research laboratory at the organization one of the organization's deans is the
Answers (1)
Do you think of travel organization company might be able to get less expensive airline tickets then you as an individual could get
Answers (1)
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 46,000 units and sold 38,000 units at a price of $120 per unit.
Answers (1)
An employee earns $36 per hour and 1.75 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week, and that the gross pay prior to the current week totaled $52,200.
Answers (1)
New Questions in Business
April 1 purchased land for $2,160,000. may 1 sold equipment that cost $1,020,000 when purchased on january 1, 2014. the equipment was sold for $612,000.
Answers (1)
In Keynes's liquidity preference theory, what variables determine the demand for real money balances? A. The demand for real money balances depends on the interest rate and net exports. B.
Answers (1)
Which of the following is NOT one of the strategies incorporated in the Sarbanes-Oxley Act of 2002? (A) Establish compliance programs (B) Establish ethics programs (C) Dictate maximum compensation levels (D) Attain greater board independence
Answers (1)
On March 1, 2022, Blossom Company acquired real estate, on which it planned to construct a small office building, by paying $86,000 in cash.
Answers (2)
Which of the following statements is true of the market introduction stage of the product life cycle?
Answers (1)
Home » Business » Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The company sold its newly issued stock and was able to a mass a sizable amount of money to invest.
Sign Up Forgot Password?