In which type of financing does an investor receive shares for the money invested.Group of answer choicesDebt FundingLoansBusiness IncubatorsEquity Funding

Break Down the Problem

1. Identify the options provided for types of financing.
2. Determine which option involves receiving shares in exchange for investment.

Relevant Concepts

• Debt Funding: Typically involves borrowing money that must be repaid with interest, not involving shares.
• Loans: Similar to debt funding, where an amount is borrowed and repaid, usually not offering any shares.
• Business Incubators: These are programs that support startups, but they do not specifically imply receiving shares.
• Equity Funding: This type of funding involves investors providing capital in exchange for ownership shares in a company.

Analysis and Detail

• Debt funding and loans do not offer equity or shares; they involve repayment of borrowed sums.
• Business incubators provide resources for startups, but they do not directly relate to the issuance of shares.
• Equity funding is characterized by the investment in exchange for an ownership stake, making it the only option that fits the criteria.

Verify and Summarize

Since equity funding is defined as the process where investors provide capital in exchange for shares in the company, it is the correct type of financing described in this question.

Final Answer

Equity Funding is the type of financing where an investor receives shares for the money invested.