A Means of Obtaining Financial Resources That Involves the Sale

question 71

Multiple Choice

A means of obtaining financial resources that involves the sale of part of the ownership of the business is

• A) debt financing.
• B) equity financing.
• C) commercial loans.
• D) bankruptcy.

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Definitions:

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Stock Dividend

A type of dividend payment made in the form of additional shares of stock rather than cash, often used by companies to conserve cash.

Par Value

The nominal or face value of a bond, stock, or other financial instrument, representing the amount to be repaid at maturity.

Market Price

Market price is the current price at which an asset or service can be bought or sold in a competitive marketplace.