HKSI Paper 11 Practice Questions - HKSI Licensing Examination Paper 11 - Corporate Finance Exam

Which of the following best describes direct financing?

A company borrowing from a bank that lends out its depositors' money A company raising funds by selling securities directly to investors in the capital markets A government printing money to fund spending A company reinvesting its own retained earnings

Correct Answer:

A company raising funds by selling securities directly to investors in the capital markets

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