Jacob and Molly decide to start a new cake-decorating business. They each contribute $10,000 to get the business off the ground. This money is considered
A) sales revenue.
B) long-term debt.
C) equity capital.
D) short-term financing.
E) cash flow.

Question

Quizplus · Accepted Answer

The money contributed by Jacob and Molly is considered equity capital, which is the funding provided by the owners of a business. This means that they are part owners of the business, and any profits or losses will be shared among them.

Jacob and Molly Decide to Start a New Cake-Decorating Business