With plans to build a $50 million theme park,Lakeview Enterprises intends to finance this project through the sale of additional shares of ownership in their firm.Selling new shares of stock represents ___________ financing.

Question

Quizplus · Accepted Answer

Selling new shares of stock represents equity financing, as it involves raising funds by selling ownership in the company to new investors. Retained financing involves using profits or existing funds within the company, debt financing involves taking on loans or issuing bonds, and an initial public offering (IPO) involves a company issuing shares of stock for the first time.

With Plans to Build a $50 Million Theme Park,Lakeview Enterprises