Which of the Following Invests Funds into a Business and Is

question 87

Multiple Choice

Which of the following invests funds into a business and is considered an owner?

• A)Stockholders
• B)Creditors
• C)Bankers
• D)Lenders

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Definitions:

Dividend

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.

Historical Constant Growth

A growth rate that assumes a constant rate of increase over time, often used in financial forecasting.

Present Value

Present value is a financial concept that involves determining the current worth of a future sum of money or stream of cash flows given a specific rate of return.

Second Class of Stock

A category of shares that have different rights and privileges than the primary class of stock in a company, often with different voting or dividend rights.