Final answer:Firms generate cash and profits, investing money in the present for future profit gains. They raise financial capital through early-stage investors, reinvesting profits,borrowing, and selling stock. These options allow them to manage their funds, even in challenging times.Explanation:At the most fundamental level, firms generate cash and profits. They make decisions to spend money in the present, such as buying equipment or starting research and development projects, in anticipation of earning profits in the future. Firms raise thefinancial capitalthey need for these investments in four main ways: obtaining funds from early-stage investors,reinvesting profits, borrowing through banks or bonds, and selling stock. These options allow firms to manage their capital and ensure a steady flow of funds, even in challenging times. For example, if a firm is earning profits, they may choose to reinvest some of these profits in their operations. However, if their revenue falls short or they suffer losses, they may need to find other financial capital sources, such as banks or bonds.Learn more about Firms Generating Cash and Profits here:brainly.com/question/38218761#SPJ4...

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