One way that investors contribute capital to the firm is by:
A) plowing back money into retained earnings.
B) paying less than par value for the stock.
C) receiving dividends and reinvesting them on their own.
D) increasing the amount of treasury stock.

Question

Quizplus · Accepted Answer

Investors contribute capital to a firm by plowing back money into retained earnings, which involves reinvesting profits back into the company rather than distributing them as dividends.

One Way That Investors Contribute Capital to the Firm Is