What is typically included in the definition of capital raising?

Capital raising encompasses the process through which a company obtains funds to support its operations, growth, or other financial needs. The correct answer includes both debt and equity financing as integral components of capital raising.

Debt financing refers to borrowing funds that must be repaid over time, usually with interest. This can emerge from various sources such as loans, bonds, or credit lines. On the other hand, equity financing involves raising capital through the sale of shares in the company, allowing investors to become partial owners.

By integrating both debt and equity financing within the capital raising definition, it reflects the comprehensive strategies businesses utilize to gather necessary resources for their financial objectives. Different companies might lean more towards one form over the other, but both are fundamental methods for raising capital.

Investor relations management was not included in the capital raising definition as it primarily focuses on maintaining relationships between a company and its investors, rather than the actual process of raising funds. Hence, the choice that encompasses both financing avenues is the most accurate representation of capital raising activities.