Asked by Martie Coleman on Jul 27, 2024
Verified
All of the following actions result in equity capital EXCEPT
A) issuing bonds.
B) liquidating assets.
C) issuing stock.
D) reinvesting earnings.
Equity Capital
Funds raised by a company through the sale of shares in return for ownership interest, without obligation to repay the investment.
Issuing Bonds
The act of a corporation or government raising capital by borrowing from investors through the sale of bond securities.
Reinvesting Earnings
The practice of using a company's profits to invest back into the business to fund growth, expansion, or improvements rather than distributing it to shareholders as dividends.
- Identify the multitude of investment sources for businesses and the repercussions of each selection.
Verified Answer
Learning Objectives
- Identify the multitude of investment sources for businesses and the repercussions of each selection.
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