Which of the following is not a way of raising capital for business?
Answer Details
The way of raising capital for business that is not listed among the options is: Issuing dividend warrants.
Dividend warrants are documents that are sent by a company to its shareholders, as a means of payment of dividends. They are not a way of raising capital for the company, but rather a way of distributing the profits of the company to its shareholders.
On the other hand, issuing of bonds, borrowing, savings, and ploughing back profit are all ways that a business can raise capital to finance its operations or expansion. Issuing of bonds involves borrowing money from investors and paying them back with interest at a specified time in the future. Borrowing involves taking loans from financial institutions or other lenders, which must be repaid with interest. Savings refer to the money that a business sets aside from its profits to fund future investments. Ploughing back profit involves reinvesting profits earned by a company back into the business, instead of distributing them as dividends.