Which of the Following Is an Example of Financing

question 50

Multiple Choice

Which of the following is an example of financing?

• A)An investor purchases stocks and bonds
• B)A company issues stock to raise money to purchase assets
• C)An investors buys shares in a mutual fund to earn a return
• D)An investor sells stocks and bonds

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Definitions:

Circular Flow

A model in economics that illustrates how money moves through an economy between producers and consumers, highlighting the interdependencies of different economic sectors.

Public Ownership

Ownership of assets by the government or public entities, as opposed to private individuals or companies.

Competition

the rivalry among businesses to attract customers and achieve such goals as higher sales, market share, and innovation.

Market Price

The current value at which an asset or service can be bought or sold in the open market.