Question

By selling shares of ownership in their company, California Scientific acquires the funds needed to finance their research and development projects. California Scientific provides for their long-term funding needs through ________ financing.

A. debt
B. equity
C. retained
D. asset

Answer 1

California Scientific provides for their long-term funding needs through equity financing.

Step-by-step explanation:

California Scientific provides for their long-term funding needs through equity financing.

Equity financing involves selling shares of ownership in the company to investors in exchange for funds. By selling these shares, California Scientific acquires the funds needed to finance their research and development projects.

This method of financing allows the company to raise capital without incurring debt or making interest payments, and it gives investors a stake in the company's success.