Which of the following is an example of equity finance ?
Correct answer: B. Company shares
- A. Corporate bonds
- B. Company shares
- C. All of these answers are equity finance
- D. Government bonds
Explanation
Company shares represent ownership claims, so issuing them raises equity finance. Bonds are debt instruments because the issuer must repay borrowed funds with interest.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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