Question

Which of the following is the money raised by a business or inventor in exchange for a share of ownership in the company?

A. To sell unlimited stock to raise money for the business.
B. To choose whether or not to use the double taxation method.
C. To have international shareholders.
D. To be taxed as if they are sole proprietors or partners.

Answer 1

The money raised by selling a share of ownership in a company is known as stock. By issuing stock, a company gains shareholders and must be accountable to them and a board of directors.

Step-by-step explanation:

The money raised by a business or inventor in exchange for a share of ownership in the company is done so by issuing stock. When a company sells stock, it is selling off portions of its ownership to the public, who become shareholders. This form of raising capital does not involve scheduled interest payments as with loans or bonds, but it does require the company to be accountable to these shareholders and typically involves a board of directors.