For a corporation, direct investment from owners occurs when:
A) it sells newly issued stock.
B) its earnings are used for debt financing.
C) it issues commercial paper.
D) it pays dividend to its debenture holders.

Question

Quizplus · Accepted Answer

When a corporation sells newly issued stock, it receives direct investment from owners as they are purchasing ownership shares in the company.

For a Corporation, Direct Investment from Owners Occurs When