Benefits of Capital Markets: Benefits To Individual Companies - SS2 Accounting Past Questions and Answers - page 1
What benefit do capital markets provide to individual companies?
Access to capital
Increased government regulation
Reduced market visibility
Decreased liquidity
How can capital markets help companies manage risk?
By increasing government regulation
By reducing liquidity
By providing risk management tools
By decreasing access to capital
What is the primary benefit of capital markets to companies?
Improved market visibility
Increased competition among companies
Reduced funding sources
Decreased liquidity
What is the role of capital markets in diversifying funding sources for companies?
To reduce funding sources
To increase reliance on bank loans
To provide a platform for companies to raise capital from a diverse range of investors
To decrease access to capital
How can increased liquidity in capital markets benefit individual companies?
By reducing funding sources
By decreasing market visibility
By making it easier to access funding
By reducing competition among companies
How can capital markets help individual companies finance growth?
Capital markets can help individual companies finance growth by providing them with access to capital through the issuance of debt or equity securities.
What is the benefit of diversifying funding sources for individual companies?
Diversifying funding sources can reduce the reliance of individual companies on bank loans or other forms of financing, reducing their exposure to financial risks and increasing their flexibility in managing their finances.