Long-term financing generated by the owners of a company is called ________ financing.
A)secured
B)debenture
C)equity
D)debt

Question

Quizplus · Accepted Answer

Equity financing refers to the funds raised by a company through the sale of ownership shares to investors or the issuance of new common stock. This type of financing is considered long-term because there is no set maturity date for the ownership shares, and the investor typically expects to earn a return on their investment through dividends or appreciation in the value of the stock over time. In contrast, secured, debenture, and debt financing typically have set repayment terms and are considered shorter-term financing options.

Long-Term Financing Generated by the Owners of a Company Is