Capital formation is the process through investors increase the amount of capital they control. Thus, option (c) is correct.
What is capital formation?
The word "capital formation" refers to a country's net capital accumulation over the course of an accounting period.
When a corporation issues securities to equity investors and debt to bondholders, the total amount of debt and capital lease obligations are added to the amount of stock given to investors to determine the overall amount of money raised. This amount is referred to as invested capital.
As a result, option (c) is correct.
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