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Debt Capital Vs Equity Capital

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

How can a corporation raise equity capital?

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1. Why might a company choose to sell preferred stock versus common stock?

2. How are raising money through equity and through debt similar for a business?

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About This Quiz & Worksheet

Use this quiz/worksheet combo to gauge your understanding of principles of debt and equity capital. Topics you will need to know to pass the quiz include capital principles and debenture.

Quiz & Worksheet Goals

This quiz and printable worksheet can assess your understanding of:

  • Differences between debt capital and equity capital
  • How corporations raise equity capital
  • Properties of debt capital
  • Purpose of debentures

Skills Practiced

  • Distinguishing differences - compare and contrast topics from the lesson, such as debt and equity capital
  • Problem solving - use acquired knowledge to solve finance problems
  • Information recall - access the knowledge you have gained regarding debentures

Additional Learning

To learn more about debt and equity capital, review the accompanying lesson on Debt Capital vs. Equity Capital. This lesson covers the following objectives:

  • Determine the difference between debt and equity capital
  • Define debenture
  • Explain features of stocks
  • Find commonalities between equity and debt capital
  • Learn how corporations raise debt capital
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