Asked by Gurkamal Cheema on Jun 22, 2024
Verified
Cheng is in the process of using debt financing to fund his new venture.In this case,he is most likely to
A) borrow loans from banks.
B) obtain funding from venture capitalists.
C) secure funding from angel investors.
D) exchange a share of ownership in his company for money.
Debt Financing
Borrowed funds that entrepreneurs must repay.
Angel Investors
Wealthy individuals who invest directly in a new venture in exchange for an equity stake.
Venture Capitalists
Investors who provide funding to startups or small businesses with long-term growth potential in exchange for equity, or partial ownership of the company.
- Acquire knowledge about the range of financing options for entrepreneurs and their defining characteristics.
Verified Answer
TJ
Tiffany JonesJun 26, 2024
Final Answer :
A
Explanation :
Debt financing typically involves borrowing money, which is most commonly done through loans from banks. Venture capitalists and angel investors usually provide equity financing, not debt financing, and exchanging a share of ownership for money also refers to equity financing, not debt financing.
Learning Objectives
- Acquire knowledge about the range of financing options for entrepreneurs and their defining characteristics.
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