____ represent(s)ownership in a company and entitle(s)the holder to future cash distributions from the operations of the firm.

Question

Quizplus · Accepted Answer

Equity represents ownership in a company and entitles the holder to future cash distributions from the operations of the firm, such as dividends. Debt represents borrowed money that must be repaid with interest, and does not entitle the holder to ownership or future cash distributions. Swaps and options are financial derivatives that involve the exchange of cash flows based on future events or prices, but do not represent ownership in a company.

____ Represent(s)ownership in a Company and Entitle(s)the Holder to Future