Question

When a new strain of the flu spreads across the country, Joshua, the owner of a small drugstore, decides to stock extra inventory of cold and flu medications. Lacking sufficient capital to purchase the extra inventory, Joshua asked the bank to help. The bank promised to lend a predetermined sum of money on demand. Which of the following sources of funding does this scenario best illustrate?

Answer 1

If  Joshua asked the bank to help. The bank promised to lend a predetermined sum of money on demand. The sources of funding this scenario best illustrate is: venture capital.

What is venture capital?

Venture capital can be defined as the process in which a financial institution tend to give out loans to small business owners  that have potentials of making it big so as to enables the business to succeed or to grow higher.

Based on the scenario the funding tend to represent venture capital because Joshua is a small business owner that lack sufficient capital.

Therefore If the bank promised to lend a predetermined sum of money on demand. The sources of funding this scenario best illustrate is: venture capital.

Learn more about venture capital here:brainly.com/question/18776651

#SPJ1

The complete question is:

When a new strain of the flu spreads across the country, Joshua, the owner of a small drugstore, decides to stock extra inventory of cold and flu medications. Lacking sufficient capital to purchase the extra inventory, Joshua asked the bank to help. The bank promised to lend a predetermined sum of money on demand. Which of the following sources of funding does this scenario best illustrate?

trade credit

initial public offering

venture capital

equity financing

line of credit