BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ENVIRONMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
How do we call the money brought by shareholders?
A
Available funds
B
Equity
C
Cash
D
Shareholder Liability
Explanation: 

Detailed explanation-1: -Share capital (shareholders’ capital, equity capital, contributed capital, or paid-in capital) is the amount invested by a company’s shareholders for use in the business.

Detailed explanation-2: -Shareholders’ equity is the amount that the owners of a company have invested in their business. This includes the money they’ve directly invested and the accumulation of income the company has earned and that has been reinvested since inception.

Detailed explanation-3: -Shareholders’ funds is also known as shareholders’ equity or shareholders’ capital.

Detailed explanation-4: -Equity and shareholders’ equity are not the same thing. While equity typically refers to the ownership of a public company, shareholders’ equity is the net amount of a company’s total assets and total liabilities, which are listed on the company’s balance sheet.

Detailed explanation-5: -Stockholders Equity (also known as Shareholders Equity) is an account on a company’s balance sheet that consists of share capital plus retained earnings. It also represents the residual value of assets minus liabilities.

There is 1 question to complete.