Questions: A business owner raising the capital to start a business is known as what?
Capitalizing a business
Crediting a business
Raising a business
Loaning a business
Transcript text: A business owner raising the capital to start a business is known as what?
Capitalizing a business
Crediting a business
Raising a business
Loaning a business
Solution
The answer is A: Capitalizing a business.
Explanation for each option:
A. Capitalizing a business: This is the correct answer. Capitalizing a business refers to the process of raising the necessary funds or capital to start and operate a business. This can involve obtaining funds from various sources such as personal savings, investors, or loans.
B. Crediting a business: This option is incorrect. Crediting a business typically refers to the act of extending credit to a business, allowing it to purchase goods or services with the agreement to pay later. It is not specifically about raising capital to start a business.
C. Raising a business: This option is incorrect. While "raising" can refer to gathering resources, the phrase "raising a business" is not commonly used to describe the process of obtaining capital. It is more often used in the context of building or growing a business.
D. Loaning a business: This option is incorrect. Loaning a business would imply providing a loan to a business, which is a method of financing but not the overall process of raising capital. It is a specific action within the broader context of capitalizing a business.