What are the two primary sources of equity financing?
A) direct owner contributions and retained earnings
B) owner debt structure and factoring
C) cash and owners' equity
D) discounting and factoring

Question

Quizplus · Accepted Answer

The two primary sources of equity financing are direct owner contributions and retained earnings. Direct owner contributions refer to the money that owners invest in their own business, while retained earnings are profits that the business chooses to reinvest rather than distribute as dividends. Neither B, C, nor D accurately represent primary sources of equity financing.

What Are the Two Primary Sources of Equity Financing