Which Source of Capital Is Identified as a Group of Small

question 98

Multiple Choice

Which source of capital is identified as a group of small investors who are willing to invest money into the new firm in exchange for an ownership share?

• A) Venture capital firm
• B) Foreign investors
• C) Stockbroker syndicate
• D) Silent domestic partner
• E) Banks

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Definitions:

Financing Activities

Transactions and events where a business raises capital or repays funds to finance its operations and investments, typically involving debt, equity, and dividend payments.

Treasury Stock

Shares that were once part of the outstanding shares and have been subsequently reacquired by the issuing company and held in its own treasury.

Net Cash Flow

The difference between a company's cash inflows and cash outflows for a given period.

Investing Activities

Transactions and events that relate to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.