Question

Which of the following statements about equity financing is FALSE?
A. Companies often have to pay interest when they use
equity financing.
B. Equity financing is a popular option for startups.
C. Equity financing is when a company sells shares of
ownerships to investors in order to raise money.
D. Equity financing can come from angel investors, venture
capitalists, or the stock market.

Answer 1

The correct answer is A; Companies often have to pay interest when they use equity financing.

Further Explanation:

When a business or other people are trying to raise funds many people use equity financing. When equity financing is used, stock in a company is sold to other investors. The investors then get a part of ownership in the company even if it is a small part of ownership.

Three of the most common examples of this type of financing are;

1. Pension funds
2. Insurance companies
3. Mutual funds

A few sources of equity financing are;  

1. Venture Capital Firms
2. Angel Investors
3. Retained Earnings
4. Corporate Investors

Learn more about equity financing at https://brainly.com/question/11856941

#LearnwithBrainly