A business owner wishes to raise money to finance a marketing strategy.She decides to raise the money by selling ownership to her company.What will the business owner sell?

Question

Quizplus · Accepted Answer

The business owner will sell ownership in her company, which is represented by common stock. Retained earnings refer to the profits that have been plowed back into the company, long-term assets refer to items like property and equipment, and current assets refer to items like cash and inventory. None of these options would represent ownership in the company.

A Business Owner Wishes to Raise Money to Finance a Marketing