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

In this section, we will discuss the options businesses have for obtaining financial capital to fund growth and other initiatives at different business stages and given different business structures and objectives. In the process, we’ll distinguish between bonds and bank loans and private and public companies and discuss tradeoffs between debt and equity financing and stock issuance as a source of financing. We’ll conclude with a discussion of how businesses decide which option is best.