_____ Involves Giving Ownership Shares in the Business to Outside

question 93

Multiple Choice

_____ involves giving ownership shares in the business to outside investors in return for their cash investments.

• A) Debt consolidation
• B) Equity financing
• C) Debt financing
• D) Securitization
• E) Risk management

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Definitions:

Period Costs

Costs that are not directly tied to the production process and are expensed in the period they are incurred, such as sales, general, and administrative expenses.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Product Costs

Expenses directly associated with the creation of a product, including direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses that are not directly tied to production activity and are expensed in the period in which they occur.