Fill in the Blank QuestionFill in the blank question.Equity capital is money that a business obtains from its .
Question
Fill in the Blank Question
Equity capital is money that a business obtains from its .
Solution
Equity capital is money that a business obtains from its owners or shareholders. This type of capital represents funds raised by a company in exchange for a share of ownership in the business. Unlike debt financing, equity capital does not require repayment and does not involve interest payments; instead, equity investors typically earn returns through dividends and capital appreciation. Equity capital is a crucial resource for businesses, enabling them to fund operations, invest in new projects, and facilitate growth. It signifies a form of long-term funding that aligns the interests of the business with those of its investors, as both parties stand to benefit from the company’s success.
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