Equity financing (or funding) means ________.
A) exchanging partial ownership in a firm, usually in the form of stock, for funding
B) getting a grant or outright gift
C) getting a loan
D) getting a lease
E) getting a loan guarantee

Question

Quizplus · Accepted Answer

Equity financing refers to raising funds by exchanging partial ownership in a firm, usually in the form of stock, for funding. Grants or gifts (B) do not involve ownership in the firm, loans (C) involve debt financing rather than equity financing, leases (D) involve renting property rather than exchanging ownership in a firm for funding, and loan guarantees (E) involve a third party guaranteeing to repay a loan if the borrower cannot, rather than exchanging ownership in a firm for funding.

Equity Financing (Or Funding) Means ________