GENERAL KNOWLEDGE

GK

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: -Franchise. Q. Advantages of this type of business include: selling stock to raise money, limited liability. Sole Proprietorship. Partnership.

Detailed explanation-2: -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-3: -A company can raise capital by selling off ownership stakes in the form of shares to investors who become stockholders. This is known as equity funding.

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