Question

For a corporation, direct investment from owners occurs when:

Answer 1

For a corporation, direct investment from owners occurs when there is an influx of capital to get equity shares

A corporation is an institution or organization that is made up of a group of people who come together and act as a single entity.

When there is a direct investment from owners of a corporation, then this means that there is an influx of capital to buy equity shares.

There are different ways of making a direct investment such as:

• Buying shares
• Opening a company in another country, etc

Therefore, when a corporation makes a direct investment, then they are buying equity shares

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