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From course:

Economics A Level (DONEEEEEEE)

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Question:

Why would Firms be Engaged in Borrowing Money from the Financial Sector?

Author: eric_galvao



Answer:

-Equity Finance: The Firm will share Shares in their Company. As people buy the Shares, the number of Shareholders Increase. -Debt Finance: Borrowing Money that must be Paid Back, with an % Rate. This can be from Financial Institutions or Corporate Bonds -Furthermore, an Overdraft may also be set up


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