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6 October, 10:34

Timoth Steels, a steel manufacturing company, wants to install a new factory in Temenia. The company decides to use funds from its own account and refrain from borrowing money from banks. Which of the following sources of long-term funds is being used by Timoth Steels in the given scenario? A. Term loansB. Corporate bondsC. Direct investments from ownersD. Long-term debt

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  1. 6 October, 14:32
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    Answer: C.

    Direct investments from owners

    Explanation: Direct investment generally refers to situations in which a company has established manufacturing facilities in any wholly-owned, either through a wholly owned subsidiary or as a joint venture partner with a partial ownership stake.

    Direct investments are those in which the investor owns the particular assets himself.
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