Which of the following involves trading partial ownership interests for capital?

Equity financing

Debt financing

Partnership financing

Corporate financing

Equity Financing!

The answer is: A. Equity financing

In most cases, companies choose to do this if they want to expand their operation.

Corporations do this by selling the shares of their company to the public or a select group of investors. When the partial ownership is traded with capital, the corporations would have an obligation to share their profit to the shareholders in the form of dividend.