John Martin and Bob Johnston want to start a small manufacturing business.To obtain the financing they need, they decide to sell stock to their friends.The sale of stock is _____.
A) sales revenue
B) debt capital
C) equity capital
D) factor proceeds
E) cash flow

Question

Quizplus · Accepted Answer

Selling stock to friends is a way of obtaining equity capital, which means ownership in the company is being sold in exchange for funds. The stockholders will share in the profits and losses of the business.

John Martin and Bob Johnston Want to Start a Small