Of the three major activities of a firm, cash raised from the issuance of new debt is known as Blank______.Multiple choice question.revenueoperationsinvestmentsfinancing
Question
Of the three major activities of a firm, cash raised from the issuance of new debt is known as Blank______.Multiple choice question.revenueoperationsinvestmentsfinancing
Solution
The correct answer is "financing". This is because when a firm raises cash from the issuance of new debt, it is essentially obtaining financing. This is not revenue, as it is not income generated from the firm's operations or investments. Instead, it is a form of financing that the firm must eventually pay back.
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