Tamika borrows $40,000 from her father for her new business venture. She promises that he will be a partner in the business and be entitled to a significant percent of the business's profits at the end of the year. This is an example of

Question

Quizplus · Accepted Answer

This is an example of equity financing. Small businesses can obtain equity financing by finding investors for their operations. They may sell stock in the business to family members, friends, employees, or other investors.

Tamika Borrows $40,000 from Her Father for Her New Business