Multiple choice

Money invested in a business in return for a share in profits of the business is referred to

  1. Debt to Equity ratio

  2. Debt Capital

  3. Equity Capital

  4. Bank Loan
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Equity capital represents funds provided by investors in exchange for ownership and a share of future profits. Debt capital, by contrast, involves borrowing money that must be repaid with interest regardless of profit performance.

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