Asked by Praveeni Sooriyamudali on Apr 29, 2024
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Altitel Inc.has difficulties with managing operating costs of their company due to shortage of short-term finance.The company needs liquid assets and some capital to improve its performance in the market.Samuel,an established businessman,raises money from wealthy individuals and invests it in the company.He also gives the company critical advice about managing their processes effectively.In exchange,Samuel owns a small part of the company.In the context of the sources of financing,Samuel is a
A) leverage advisor.
B) risk-return trader.
C) venture capitalist.
D) hedge fund consultant.
Venture Capitalist
An investor who provides capital to startup companies and small businesses with perceived long-term growth potential in exchange for equity.
Leverage Advisor
A financial advisor specialized in guiding clients on how to use borrowed funds or leverage to potentially increase investment returns.
Risk-Return Trader
An investor who analyzes the potential return of an investment relative to its risk, aiming to maximize returns while minimizing risks.
- Recognize the functions and investment tactics of institutional investors such as hedge funds, venture capitalists, and sovereign wealth funds.
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Learning Objectives
- Recognize the functions and investment tactics of institutional investors such as hedge funds, venture capitalists, and sovereign wealth funds.
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