Raising money to start a business by selling a percentage of the company is called __________.

Question

Quizplus · Accepted Answer

Equity financing involves selling a percentage of the company to investors in exchange for their investment. This can be done through angel investors, venture capitalists, or crowdfunding platforms. This differs from debt financing where a loan is taken out and must be paid back with interest. Initial public financing refers to the process of becoming a publicly traded company through an initial public offering (IPO). Asset financing involves using existing assets such as equipment or real estate as collateral for a loan.

Raising Money to Start a Business by Selling a Percentage