Which of the following is true of equity?
A) equityholders do not have voting rights.
B) It does not mature, so repayment is not required.
C) It is a temporary form of financing for a firm.
D) Equity financing is obtained from creditors.

Question

Quizplus · Accepted Answer

Equity does not have a maturity date, meaning repayment is not required. Instead, equity investors receive a share of the profits or losses of the company. Option A is false as equityholders typically have voting rights in a company. Option C is incorrect as equity financing is often a long-term source of financing for a firm. Option D is wrong because equity financing is obtained from investors, not creditors.

Which of the Following Is True of Equity