Which of the Following Is an Example of Financing

question 50

Multiple Choice

Which of the following is an example of financing?

• A)An investor purchases stocks and bonds
• B)A company issues stock to raise money to purchase assets
• C)An investors buys shares in a mutual fund to earn a return
• D)An investor sells stocks and bonds

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Definitions:

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest are deducted from total revenue.

Cash Investment

Funds that are invested in assets that can be quickly turned into cash, or the act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

Equipment Sale

The process of selling off business-owned equipment, either to upgrade to newer assets or to liquidate assets for cash.

Cash Dividend

A payment made by a company out of its earnings to its shareholders in cash.