Asked by Ericka Pearce on Apr 27, 2024
Verified
Daniel's company needs to obtain funds in order to keep the business going; however,he does not want stockholders influencing the direction of his company.What type of financing should Daniel acquire?
A) Angel investment
B) Venture capital
C) Debt capital
D) Equity capital
Debt Capital
Funds obtained from borrowing.
Equity Capital
Funds obtained from owners.
- Identify the various sources of funding available to firms and the implications of each.
Verified Answer
AB
Amanda BorisowApr 28, 2024
Final Answer :
C
Explanation :
Debt capital is the correct choice because it involves borrowing funds that must be repaid over time, but does not give the lender ownership stakes or direct influence over the company's operations, allowing Daniel to retain control over his company's direction.
Learning Objectives
- Identify the various sources of funding available to firms and the implications of each.
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