Which of these refers to the financing that consists of funds that are invested in exchange for ownership in the company?
A) Venture-debt
B) Debt financing
C) Equity financing
D) Franchising
E) Licensing

Question

Quizplus · Accepted Answer

Equity financing is financing that involves funds invested in a company in exchange for ownership, typically through the purchase of shares or stocks. The investor becomes a part-owner of the company and shares both the risks and rewards of ownership. Venture-debt may provide some ownership in exchange for financing, but it is primarily focused on providing loans to startups. Debt financing involves borrowing money that must be repaid with interest, without offering any ownership in the company. Franchising and licensing are business models that involve licensing intellectual property or business models from established companies but are not directly related to financing.

Which of These Refers to the Financing That Consists of Funds