Equity Capital Is Money

question 2

Multiple Choice

Equity capital is money

• A)obtained from the owners of the business.
• B)borrowed through banks.
• C)obtained by employee benefit programs.
• D)that has to be repaid.
• E)that has been allocated to a retirement program.

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Definitions:

Functional Currency

The money used in the main economic area where a business functions and produces cash inflows.

Bonds Payable

Long-term liabilities representing money owed by an entity to bondholders, to be repaid at a future date with interest.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and finance operations.

Foreign Subsidiary

A company that is owned or controlled by another company, located in a country different from the parent company.