Final answer:
Companies can raise capital by selling stock, issuing bonds, or borrowing from a bank, each with its own advantages and disadvantages.
Explanation:
When a firm needs to raise capital, it can explore various options such as selling shares of stock, issuing bonds, or borrowing from a bank. Selling shares of stock involves offering ownership stakes in the company to the public, while issuing bonds means promising to repay a certain amount in the future. Borrowing money allows the firm to maintain control but commits to interest payments.
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