Financial Market facilitates business firms ______.

(a) To make more sales
(b) To raise funds
(c) To minimize fund requirement
(d) To recruit workers

Question

Financial Market facilitates business firms ______.

(a) To make more sales
(b) To raise funds
(c) To minimize fund requirement
(d) To recruit workers

Accepted Answer

>

> [!TLDR]
> A financial market helps business firms raise funds, so the correct answer is option (b).
>
> How to reason it out:
>
> - The basic function of a **financial market** is to mobilise savings and direct them to those who need finance for productive purposes. For a business firm this means it can **raise funds** (capital) by issuing securities such as equity shares, preference shares and debentures, or by borrowing short-term through money-market instruments.
> - **(a) To make more sales** is a marketing outcome, not a function of the financial market. …

Q.Financial Market facilitates business firms ______.

Concept understanding — Meaning and Functions of Financial Markets

Q.Financial Market facilitates business firms ______.

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