Funds Used to Start a Business Are Usually the Owner's

question 128

True/False

Funds used to start a business are usually the owner's.

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Definitions:

Equity-Financed

A method of raising capital whereby a company issues new shares of stock and receives fresh capital in return but does not incur debt.

Value Per Share

The amount of money that would be received for each share of stock if all of a company’s assets were sold at their exact book value.

Incremental Value

The additional value created by undertaking a particular action, project, or investment, compared to not doing so.

Shares Outstanding

The total number of shares of a company that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.