Asked by Chelianne Leata Miller on Apr 27, 2024

verifed

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.
verifed

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.