The two primary sources of equity financing are:
A)trade credit and commercial paper.
B)stockholder investments and retained earnings.
C)owner debt structure and factoring.
D)liquid assets and the sale of corporate bonds.

Question

Quizplus · Accepted Answer

Stockholder investments and retained earnings are the two primary sources of equity financing. Stockholder investments involve issuing shares of ownership in the company, while retained earnings are profits that are reinvested back into the business rather than distributed to shareholders as dividends. Trade credit, commercial paper, owner debt structure, factoring, liquid assets, and the sale of corporate bonds are all sources of financing, but they are not considered to be primary sources of equity financing.

The Two Primary Sources of Equity Financing Are