BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is a company called that sells stock to raise money?
A
Partnership
B
Corporation
C
Sole Proprietorship
D
Limited Partnership
Explanation: 

Detailed explanation-1: -A startup company may raise capital through angel investors and venture capitalists. Private companies, on the other hand, may decide to go public by issuing an initial public offering (IPO).

Detailed explanation-2: -Listed companies sell shares in order to obtain the necessary funds for the company to grow. This is first done through a process called an Initial Public Offering (IPO). After the IPO, shares are sold and bought by investors on a platform known as a stock exchange.

Detailed explanation-3: -Corporations may be private or public, and may or may not have stock that is publicly traded. They may raise funds to finance their operations or new investments by raising capital through the sale of stock or the issuance of bonds. Those who buy the stock become the owners, or shareholders, of the firm.

Detailed explanation-4: -Companies issue stocks, which are also known as equity or equities, to raise money to expand the business or create new products. Shareholders can either buy stocks directly from the company, which is called the primary market, or from another shareholder, which is known as the secondary market.

Detailed explanation-5: -Investment companies are business entities, both privately and publicly owned, that manage, sell and market funds to the public.

There is 1 question to complete.