From the viewpoint of a corporation,which source of long-term funding does not have to be repaid?
A) Equity
B) Commercial paper
C) Corporate bonds
D) Bank bills

Question

Quizplus · Accepted Answer

Equity represents ownership in a corporation, and therefore does not have to be repaid like debt financing options such as commercial paper, corporate bonds, and bank bills. Investors who purchase equity in a corporation are taking on a share of the company's risk and potential rewards, rather than loaning money that must be paid back with interest.

From the Viewpoint of a Corporation,which Source of Long-Term Funding