Donovan Corporation's sources of capital can include all of the following EXCEPT
A) investments from stockholders.
B) reinvested profits.
C) cash dividends declared by Donovan's board of directors and paid to the stockholders.
D) investments from venture capitalists.

Question

Quizplus · Accepted Answer

Cash dividends declared by Donovan's board of directors and paid to the stockholders are not a source of capital, but a distribution of profits to the existing shareholders. The other options listed are all possible sources of capital for Donovan Corporation.

Donovan Corporation's Sources of Capital Can Include All of the Following