Janice works in a factory that manufactures decorative accessories for office spaces,hotels,and designer homes.She wants to start her own business because she believes that the market for decorative products has a great growth potential.However,she does not want to depend on anyone else for procuring the initial capital and would like to raise the amount herself.In this scenario,which of the following methods could Janice adopt to raise funds through equity financing?

Question

Quizplus · Accepted Answer

Equity financing involves raising capital through the sale of shares in an enterprise, which essentially means investing one's own money or selling ownership interest to raise funds. Option D, where Janice invests her savings in the new business, directly aligns with the concept of equity financing, as she would be using her own money to fund the business, thereby increasing her ownership stake without incurring debt. Options A, B, C, and E are forms of debt financing or do not involve raising funds through equity.

Janice Works in a Factory That Manufactures Decorative Accessories for Office