MANAGEMENT

BUISENESS MANAGEMENT

BUSINESS STRUCTURE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ is the capital raised by a business or corporation through the issue and subscription of shares in the company.
A
Merger
B
Acquisition
C
Stock
D
Charter
Explanation: 

Detailed explanation-1: -Share capital is the total of all funds raised by a company through the sale of equity to investors. Issued share capital is the value of shares actually held by investors. Subscribed share capital is the value of shares investors have promised to buy when they are released.

Detailed explanation-2: -Share capital is the money a company raises by issuing common or preferred stock. The amount of share capital or equity financing a company has can change over time with additional public offerings.

Detailed explanation-3: -Equity financing is the process of raising capital through the sale of shares. Companies raise money because they might have a short-term need to pay bills or need funds for a long-term project that promotes growth. By selling shares, a business effectively sells ownership in its company in return for cash.

Detailed explanation-4: -Firms can raise the financial capital they need to pay for such projects in four main ways: (1) from early-stage investors; (2) by reinvesting profits; (3) by borrowing through banks or bonds; and (4) by selling stock. When business owners choose financial capital sources, they also choose how to pay for them.

Detailed explanation-5: -When a company issues a part of its authorized share capital, investors may or may not subscribe for all of its shares. Thus, the part of issued share capital which has been subscribed by investors is known as subscribed share capital.

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