What you’ll learn to do: describe common ways in which businesses obtain financial capital (money) to fund operations

In this section you will learn about some of the options businesses have to obtain capital and how they decide which form of capital best meets their needs.

The specific things you’ll learn in this section include:

• Distinguish between bonds and bank loans as methods of borrowing
• Distinguish between private and public companies
• Define “stock”
• Discuss how firms choose between sources of financial capital