Asked by Hailey Gallant on Jun 23, 2024
Verified
__________ involve(s) exchanging ownership shares in the business in return for outside investment monies.
A) Debt financing
B) Money market instruments
C) Futures trading
D) Equity financing
E) Commodities marketing
Equity Financing
Raising capital through the sale of shares in a company, providing investors with ownership interests.
Ownership Shares
Portions or fractions of equity in a company, providing the shareholder certain rights, such as dividends and voting power.
- Understand the financing options available to entrepreneurs, including the differences between debt and equity financing.
Verified Answer
VA
Vanshika AhujaJun 30, 2024
Final Answer :
D
Explanation :
Equity financing involves raising capital through the sale of shares in a company. Investors provide funding to the business in exchange for ownership interest or shares, without the obligation for the business to repay the amount.
Learning Objectives
- Understand the financing options available to entrepreneurs, including the differences between debt and equity financing.
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