To carry out their plans, firms require financing, that is, funds from owners and creditors.Owners provide funds to a firm and in return receive ownership interests.For a corporation, the ownership interests are:
A)Common Stock Shares
B)Corporate Bonds
C)Notes Receivable
D)Notes Payable
E)Certificates of Deposit

Question

Quizplus · Accepted Answer

Common Stock Shares represent ownership in a corporation and provide the owner with a share of the corporation's profits through dividends and potentially capital gains. Therefore, it is the best choice for ownership interests in a corporation. The other options listed are not ownership interests in a corporation - Corporate Bonds are a form of debt, Notes Receivable are assets owed to the corporation, Notes Payable are liabilities owed by the corporation, and Certificates of Deposit are a form of investment offered by banks.

To Carry Out Their Plans, Firms Require Financing, That Is