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    Question

    What is the main  objective  of capital issuance by

    a company?    
    A To finance debt repayment Correct Answer Incorrect Answer
    B To distribute profits to shareholders Correct Answer Incorrect Answer
    C To expand an existing company Correct Answer Incorrect Answer
    D To cover operational losses Correct Answer Incorrect Answer
    E To increase its market share value Correct Answer Incorrect Answer

    Solution

    While the given options may all be reasons for a company to seek capital, the primary  objective  often cited for capital issuance is to expand an existing company. This includes funding new projects, entering new markets, or enhancing production capabilities to drive growth.    

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