What Is the Purpose of Specialized Small Business Investment Companies

question 4

Multiple Choice

What is the purpose of specialized small business investment companies?

• A) They extend credit by vendors on purchases of inventory, equipment, and supplies.
• B) They allow small businesses to reap tax advantages by selling stock shares to workers.
• C) They sell common stock to the public through a regulated board such as Nasdaq without the hassle of an initial public offering.
• D) They assist socially and economically disadvantaged businesses with venture capital.

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Definitions:

LLP

Refers to a Limited Liability Partnership, a business structure where partners have limited liabilities and the partnership has elements of both partnerships and corporations.

Liable

Legally responsible or obligated, particularly in the context of debts or legal judgements.

Wrongful Dissociation

An unlawful separation or removal of a partner from a partnership contrary to the terms of the partnership agreement or statutes governing partnerships.

Custodian

An entity responsible for the safekeeping, care, and maintenance of assets or property on behalf of its owner(s) or a designated beneficiary.