Questions: m/courses/1147/quizzes/16491/take Which of the following is an example of external financing? Joint utilization Venture capital investing Sweat equity Owner financing

The answer is the second one: Venture capital investing.

Explanation for each option:

1. Joint utilization: This typically refers to sharing resources or facilities between organizations to reduce costs, rather than obtaining external funds. It is not a form of external financing.

2. Venture capital investing: This involves obtaining funds from venture capitalists who invest in a company in exchange for equity. It is a classic example of external financing, as the funds come from outside the company.

3. Sweat equity: This refers to the non-monetary investment that individuals contribute to a project or business, typically in the form of labor or expertise. It is not external financing because it does not involve external funds.

4. Owner financing: This occurs when the seller of a property or business provides financing to the buyer. While it involves financing, it is not considered external because the funds come from the owner rather than an external source.

In summary, venture capital investing is the correct example of external financing, as it involves obtaining funds from external investors.