What do enterprises typically issue when they want to raise capital from investors?

• A. Bonds
• B. Shares
• C. Loans
• D. Dividends

Answer: (B)

When enterprises want to raise capital from investors, they typically issue shares. Shares represent ownership in the company, allowing investors to buy a portion of the enterprise. This method of raising capital is fundamental for many businesses, especially when aiming to fund new projects, expand operations, or improve infrastructure.

When shares are issued, investors provide funds in exchange for equity ownership, which may come with voting rights and the potential to receive dividends in the future if the company performs well. Moreover, issuing shares can enhance the company's credibility and visibility in the marketplace, attracting further investment.

The other options, while related to finance, serve different purposes. Bonds are debt instruments that companies issue to borrow money from investors with the promise of repayment with interest, which is not the same as raising equity capital. Loans also involve borrowing funds but typically require repayment after a set period, and they do not confer ownership rights. Dividends are payments made to shareholders from a company's earnings and are distributed once a company is profitable; they are not a means of raising capital. Thus, issuing shares is the most direct and relevant way for enterprises to bring in new capital from investors.