Question

Equity financing (or funding) means ________.

"A) exchanging partial ownership in a firm, usually in the form of stock, for fundingB) getting a grant or outright giftC) getting a loanD) getting a leaseE) getting a loan guarantee"

Answer 1

A) exchanging partial ownership in a firm

Step-by-step explanation:

Equity is the basic source of fund for any corporation, it the most initial phase in which equity is issued in exchange of a share of ownership in the company. For this the equity holder pays money to the company.

In this manner there is an ownership distributed for the share of money needed by the company.

This does not involve any statutory return payment on behalf of company in later future. As against it in case of loan, it needs to be repaid.

Equity form of funds do not demand any repayment.