Equity Financing Differs from Security Financing in That, with Equity

question 375

Multiple Choice

Equity financing differs from security financing in that, with equity financing, a company:

• A) has no liability to repay shareholders the amount they have invested
• B) must pay back at least half a shareholder's investment
• C) has complete liability to repay shareholders the amount they have invested
• D) must repay all investments, but has no specific time limit for doing so
• E) must pay at least 1.5% interest on all investments

---

Definitions:

B Cells

A type of white blood cell that plays a significant role in the immune system, particularly in the production of antibodies.

Complement

Set of proteins that circulate in inactive form in the blood; activated complement attracts phagocytes, coats antigenic particles, and punctures cells.

Immune Responses

The body's defensive mechanisms activated by the immune system to recognize and eliminate foreign substances or pathogens.

Memory Cells

A type of immune cell that retains a memory of past pathogens to enable a quicker response upon re-exposure.