Which of the Following Is a Feature of Equity Financing

question 38

Multiple Choice

Which of the following is a feature of equity financing?

• A) It represents a legal obligation to repay the original debt plus interest.
• B) It involves pledging some assets-such as a home, real estate, machinery, and plant-as collateral.
• C) It involves no explicit obligation or expectation, on the part of the investors, to be repaid their investment.
• D) It specifies the amount of money to be repaid within a specific time frame for a specific interest rate.
• E) It guarantees a portion of the loan to its partners that include private lenders, microlending institutions, and community development organizations.

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Definitions:

Middle-class

A social class typically described as having moderate income and educational attainment, positioned between the lower and upper classes.

Neighborhood Party

A social gathering hosted by residents of a neighborhood intended to foster community bonding and relationships.

Male-female Friendships

Relationships of platonic nature between individuals of opposite genders, which can provide diverse perspectives and social experiences.

Ethnicities

Refers to categories of people who identify with each other based on common ancestral, social, cultural, or national experiences.