QUESTION 9 of 10: When a venture capitalist offers an entrepreneur $100,000 for shares representing 20% of a company, it is a fo

Question

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QUESTION 9 of 10: When a venture capitalist offers an entrepreneur $100,000 for shares representing 20% of a company, it is a fo

rm of:
a) Bank loan
OOOO
b) Debt financing
c) Promissory note
d) Equity financing
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1 answer:

mixer [17] · Answer 1 · 2022-06-26T07:35:23+03:00

Answer:

d) Equity financing

Step-by-step explanation:

Equity financing is the process that raised the capital via selling of the shares. Here the company would raised the money so that they would be able to pay the short term payment like bills or they have the long term goals for which the funds would be needed for investing in their growth

Since in the question there is an offer of $100,000 that represent 20% of a company so this represent the equity financing

hence, the option d is correct