Which of the Following Sources of Funding Is Most Commonly

question 163

Multiple Choice

Which of the following sources of funding is most commonly used to start a new business?

• A) bond markets
• B) stock markets
• C) capital markets
• D) personal resources

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Definitions:

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a particular point in time, providing a snapshot of its financial condition.

Statement of Stockholders' Equity

A financial document that details the changes in equity of a company over a specified period, including items like issued shares, dividends, and earnings.

Liabilities

Liabilities are the amounts of money that a business is required to pay to other parties in the future, representing the company’s debts.

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting its liabilities; essentially the net worth attributed to shareholders.