CAPITAL FOR A PROFIT MAKING ORGANIZATION IS GENERATED THROUGH

• A. Subscription
• B. shares ✓
• C. donation
• D. gift

The answer to the question is: B. shares

Capital for a profit-making organization is primarily generated through the issuance of shares. Shares represent ownership in the company and are typically sold to investors in exchange for capital. This process allows companies to raise funds for their operations and expansion. While subscription, donation, and gifts can also contribute to a company’s capital, they are not the primary means of generating capital for a profit-making organization.

Shares are a form of equity financing, where companies sell ownership stakes to investors in order to raise capital. When an organization issues shares, it offers a portion of its ownership to investors in exchange for funds. These funds can then be used by the company for various purposes such as investment in new projects, expansion, research and development, or paying off debts.

Subscription refers to the act of signing up for a service or publication on a regular basis in exchange for access or delivery. While subscription models can generate revenue for organizations, they are not typically used as the primary means of raising capital for profit-making organizations.

Donations and gifts are forms of funding that do not involve an exchange of ownership in the organization. They are more commonly associated with non-profit organizations and charitable causes rather than profit-making enterprises.

In summary, while subscription, donation, and gifts can contribute to an organization’s capital, shares represent the primary means through which profit-making organizations generate capital.