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Sebastian borrowed $75,000 from his stepmother to fund his new animation business. He said that she would be a partner in the business and would be entitled to a significant percentage of profits from the business. This is an example ofMultiple Choicefranchising.bartering.equity financing.initial public offering.bootlegging.

Question

Sebastian borrowed $75,000 from his stepmother to fund his new animation business. He said that she would be a partner in the business and would be entitled to a significant percentage of profits from the business. This is an example ofMultiple Choicefranchising.bartering.equity financing.initial public offering.bootlegging.

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Solution

This is an example of equity financing.

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