What are the two primary outside sources of funds for a business entity?
A)Creditors and investors
B)Creditors and suppliers
C)Suppliers and shareholders
D)Investors and shareholders

Question

Quizplus · Accepted Answer

The two primary outside sources of funds for a business entity are creditors (such as banks or bondholders) and investors (such as individuals buying stocks). Option B (creditors and suppliers) is incorrect because suppliers are typically a source of goods or services, not funds. Option C (suppliers and shareholders) is incorrect because suppliers are not a significant source of funds for a business entity, and shareholders are a type of investor.

What Are the Two Primary Outside Sources of Funds for a Business