Question

To have equity in a company means that:

I.You have lent money to the firm.II.You receive dividends when distributed by the firm.III.You have an ownership interest in the firm.
I and II only.
III only.
I only.
II and III only.

Answer 1

Equity in a company means that you have an ownership interest in the firm.

Step-by-step explanation:

To have equity in a company means that you have an ownership interest in the firm. It does not necessarily mean that you have lent money to the firm or receive dividends when distributed by the firm. Equity represents your claim on the assets and earnings of the company, and it is typically represented by shares of stock.