John Martin and Bob Johnston Want to Start a Small

question 136

Multiple Choice

John Martin and Bob Johnston want to start a small manufacturing business.To obtain the financing they need, they decide to sell stock to their friends.The sale of stock is _____.

• A) sales revenue
• B) debt capital
• C) equity capital
• D) factor proceeds
• E) cash flow

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Definitions:

Commission Rate

The percentage or fee paid to an agent or company for facilitating a transaction, often used in sales, brokerage, and real estate transactions.

Full-Service Broker

A financial advisor who offers a broad range of investment services, advice, and research, typically at a higher cost than discount brokers.

Online Discount Broker

A platform that allows investors to buy and sell securities at lower commission rates than traditional brokers.

Share

A unit of ownership in a company or financial asset, granting the holder a portion of the corporation's assets and earnings.