________ financing entails obtaining funds for the company in exchange for ownership.
A) Bootstrap
B) Equity
C) Debt
D) Commercial

Question

Quizplus · Accepted Answer

Equity financing involves getting funds by selling ownership shares in the company, either through issuing stocks or giving ownership interests to investors in exchange for their capital. This approach is ideal for raising capital without incurring debt or interest payments, but it comes at the price of diluting the ownership of the founders or original investors.

________ Financing Entails Obtaining Funds for the Company in Exchange