Asked by Chelianne Leata Miller on Apr 27, 2024
Verified
The sale of common stock or the use of retained earnings to provide long-term financing is known as ______.
A) debt financing
B) creative financing
C) equity financing
D) long-term financing
Equity Financing
The sale of common stock or the use of retained earnings to provide long-term financing.
Common Stock
A type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.
- Differentiate between the concepts of debt financing and equity financing, along with their effects on business funding.
Verified Answer
ZT
Zarquna TabeerApr 30, 2024
Final Answer :
C
Explanation :
Equity financing involves selling common stock or using retained earnings to secure long-term funds for business operations, unlike debt financing which involves borrowing money.
Learning Objectives
- Differentiate between the concepts of debt financing and equity financing, along with their effects on business funding.
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