When a Company Obtains Financial Resources from Owners, It Is

question 45

Multiple Choice

When a company obtains financial resources from owners, it is termed:

• A) debt.
• B) operating.
• C) equity.
• D) risk-free.

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Definitions:

Revocation

The official cancellation or withdrawal of an offer, right, or privilege, often requiring a formal declaration.

Renunciation

The formal or explicit declaration that one refuses to carry out, or is withdrawing from, an agreement or obligation.

Termination

The act of ending something, such as a contract, employment, or agreement, either by mutual consent or unilaterally by one party.

Permanent Loss

A situation where an asset loses value indefinitely, often due to fundamental changes in its market or condition.