Final answer:
Issuing shares of stock for cash is a financing activity allowing companies to raise capital without incurring debt repayment obligations but involves sharing control with shareholders.
Step-by-step explanation:
Issuing shares of stock in exchange for cash is an example of a financing activity. When a company issues stock, it is effectively selling the ownership stakes in the company to public investors in return for capital. This decision allows the company to raise funds for various purposes such as expansion, paying off debt, or financing large projects. Unlike debt financing, equity financing through issuing stocks does not require repayment, but it means sharing control of the company with shareholders and being accountable to a board of directors.