Shane Is Looking for Ways to Get More Capital for His

question 155

Multiple Choice

Shane is looking for ways to get more capital for his appliance sales and service business. He is very protective of his company's information and fears that it will get into the wrong hands. Shane would probably not want to

• A) hire new employees.
• B) incorporate his company.
• C) get a loan from a bank.
• D) take on a trustworthy friend as a partner.
• E) use a computerized accounting system.

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits via dividends.

Treasury Shares

Shares that were once part of the circulating supply of stock but were subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Financing Activities

Processes that involve the flow of cash between a company and its owners and creditors, affecting the equity and debt of the business.

Cash Flow

The total amount of money being transferred into and out of a business, primarily affecting the company's liquidity.