Which of the following is not a primary source of capital to a firm? assets, common / preferred stock or bonds?

5 Answers

  • Sale of common/preferred stock and sales of bonds are both means of financing for public or registered private companies. Assets are usually the end result of investing this capital. However, once an asset is procured and is on the balance sheet of the company, it can be sold to raise cash if necessary. However, this would not be consider a “primary source” of capital. One other note is that sales of stocks and bonds are closely regulated in the US, Canada and Europe and any company owner must be very careful not to violate SEC, Canadian or EU regulations.

    Source(s): Personal knowledge and background. In the US, I am qualified to be a Board of Directors Member/Advisor for financial matters under Oxley Sarbanes regulations.
  • assets

    Capital is used to finance assets. Assets can be a source of cash. So, the way the question is worded, assets are not a “primary” source of capital.

  • All of them are a source of capital when sold. Assets are the most difficult to sell (and least likely to be sold),

  • assets

  • C

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