For a corporation, money received from the sale of shares of ownership in a business is called _____.

Question

Quizplus · Accepted Answer

Money received from the sale of shares of ownership in a business is called equity capital. This is because shareholders own a portion of the corporation's equity, or ownership, in exchange for their investment. This differs from debt capital, which is borrowed money that must eventually be repaid with interest. Sales revenue refers to the income earned from selling a company's products or services, while factor proceeds are funds received from factors, who purchase a company's accounts receivable at a discount. Cash flow refers to the movement of money in and out of a company.

For a Corporation, Money Received from the Sale of Shares