How Are the Vast Majority of New Firms Funded

question 2

Multiple Choice

How are the vast majority of new firms funded?

• A) with commercial loans
• B) by equity stakeholders
• C) with family money
• D) with the owner's personal savings

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Definitions:

Partnership

A business formed by two or more co-owners.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, incurring debt, and being sued or suing.

Hybrid Partnership

A business organizational structure that combines features of both partnerships and corporations, allowing for flexibility in management and liability.

Limited Proprietorship

Likely referring to a Limited Partnership, a structure where there are one or more general partners with unlimited liability, and limited partners with liability restricted to their investment.