Q: The Chief Financial Officer (CFO) of a transnational company plans to build a new production site abroad. Choose all possible options for financing this new site.

A)obtain a loan from a bank
B)pay a dividend to stockholders
C) use some of the company's profits
D) issue bonds
E) obtain a loan from another company
F)sell common stock

Financing a project refers to the process of sourcing or obtaining sufficient money to implement the project. When a business plans a new project, it must think of where to get the finances to actualize it.

They are different sources of finances available to a business. These are the places where a company can obtain the money it requires. Paying out dividends is distributing profits to shareholders. The act of paying dividends does not bring in money but takes it away. All the other options bring in money.

Baraq Baraq · Answer 2 · 2021-11-18T11:19:08+01:00

According to financial operations standards, to finance the new site, the Chief Financial Officer (CFO) of a transnational company would need to do the following, including "obtain a loan from a bank."

Other means by which this new site can be financed include the following:

Use some of the company's profits
Issue bonds
Obtain a loan from another company
Sell common stock

This is because all the methods above are a means company tries to raise money.

Hence, in this case, the correct answer is options A, C, D, E, and F.

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