Which method can a company use to raise cash?

Selling stock is a direct method through which a company can raise cash. When a company sells shares of its stock to investors, it generates immediate funds that can be used for various purposes, such as funding new projects, paying off debt, or investing in growth opportunities. This method effectively increases the company's equity base and provides liquid capital without incurring debt.

The other options, while they may impact a company's financial situation, do not directly increase cash reserves. Increasing stock price is beneficial for the company's valuation and can improve market perception but does not provide immediate cash. Increasing liabilities, such as through loans or bonds, can also generate cash, but it comes with the obligation to repay, adding financial risk. Cutting expenses can help improve profitability and free up cash flow internally, but it does not involve generating new cash from external sources, which is what selling stock accomplishes.