Question : Case Study 16:
GHI Ltd. is a leading company in the telecommunications sector planning to expand its international operations.
Question :
GHI Ltd. is looking to raise funds for expanding its international operations. Which type of financial instrument might it use?
Option 1: Commercial paper
Option 2: Equity share
Option 3: Debenture
Option 4: Treasury bill
Correct Answer: Equity share
Solution : The correct answer is (b) Equity share.
Equity shares are a type of security that represents ownership in a company. When a company sells equity shares, it is raising funds by selling a piece of itself to investors. Equity shares are a good way for companies to raise funds for long-term investments, such as expanding international operations.
Question : Case Study 13:
XYZ Corporation is a conglomerate planning to diversify its operations by entering the renewable energy sector.
XYZ Corporation is diversifying into the renewable energy sector. What type of financial instrument might it use to raise capital for this new venture?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile