BUS34600117 18SP Section 1 Review of Foundations Homew Raisi

BUS-346001-17 18-SP Section 1: Review of Foundations Homew Raising funds through financial intermediaries is called Select one: O a. corporate finance. O b. indirect finance. O c. dividend reinvestment O d. direct finance. up

Solution

The correct answer to this question is \"B\" indirect finance. Raising funds through financial intermediaries is called indirect finance. Indirect finance can be defined as finances raised by the firm using financial intermediaries like mutual funds, investment banks, commercial banks etc.

Corporate finance means finances related to corporate structure capital, dividend reinvestment means a company reinvesting its own dividends it can be in form of retained earnings etc and direct finance is related to the company issuing shares or bonds directly in the open market.