WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900
SECOND INDUSTRIAL REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to regulate the free-enterprise system
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to raise money to expand
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to buy more stock in competitors
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to create a laissez-faire economy
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Detailed explanation-1: -Corporations often need to raise external funding or capital in order to expand their businesses into new markets or locations. It also allows them to invest in research & development (R&D) or to fend off the competition.
Detailed explanation-2: -Firms can raise the financial capital they need to pay for such projects in four main ways: (1) from early-stage investors; (2) by reinvesting profits; (3) by borrowing through banks or bonds; and (4) by selling stock. When business owners choose financial capital sources, they also choose how to pay for them.
Detailed explanation-3: -Corporations issue stock to raise money for growth and expansion. To raise money, corporations will issue stock by selling off a percentage of profits in a company.
Detailed explanation-4: -Since most corporations sell ownership through publicly traded stock, they can easily raise funds by selling stock. This access to funding is a luxury that other entity types don’t have. It is great not only for growing a business, but also for saving a corporation from going bankrupt in times of need.