Instead of Issuing Securities, Artificial Intelligence Inc

question 133

Multiple Choice

Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely

• A)borrow funds to be returned on a designated maturity date.
• B)give up a share of its ownership.
• C)pool funds to invest in a business venture.
• D)pay periodic dividends.

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Definitions:

Operating Expenses

The costs associated with running the core operations of a business that are not directly tied to the production of goods or services, such as rent, utilities, and salaries.

Operating Expenses

Costs incurred in the day-to-day operations of a business, excluding costs related to producing goods or services.

Supplies Expense

The cost associated with materials or goods required to operate a business but not directly tied to the products sold.

Rent Expense

This outlines the cost incurred by a business to use property or equipment as part of its operational activities for a certain period.