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The method of raising funds for capital investment that involves the greatest risk to the firm is:?

 a. borrowing by selling bonds. 

 b. relying on retained profits. 

 c. issuing common stock. 

 d. raising the dividend rate. 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/08/05
Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: a. borrowing by selling bonds.. borrowing by selling bonds. 

Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

a. borrowing by selling bonds. is having greatest risk when compared to issuing the common stocks as it is going to be a primary liability on the company.

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

. borrowing by selling bonds....................................................

Ismael Hamad
by Ismael Hamad , Trainer , ANTONOIL DMCC , Lukoil project, WQ2

...............................a. borrowing by selling bonds. ......................................................................

Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

Thanks for the invitation,

I agree with the experts 

Salvatore Augello
by Salvatore Augello , owner , A.S. Trade & Consult

answer A ________________________________________________________

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