Which term describes individuals who invest money and become part owners?

• A. Lenders
• B. Microloans
• C. Cash Flow
• D. Equity Investors

Answer: (D)

Ownership through investment: the concept here is equity financing, where investors provide capital and receive an ownership stake in the company. Equity investors contribute money and, in return, get shares that give them a claim to profits and potential appreciation, and sometimes voting rights depending on the structure. This is different from lenders, who provide funds as a loan and expect repayment with interest but do not gain ownership. Microloans are small loans and fall under debt financing, not equity. Cash flow describes the movement of money in and out of the business, not ownership. So, the term for individuals who invest money and become part owners is equity investors.