One Potential Problem with Acquiring Funds from Friends and Relatives

question 64

True/False

One potential problem with acquiring funds from friends and relatives is that they might feel they have the right to interfere in the management of the business.

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Definitions:

Farmer

An individual engaged in agriculture, raising living organisms for food or raw materials.

Hedger

An investor or trader who enters into contracts to protect against future price fluctuations of an asset.

Call Option

A Call Option is a financial contract that gives the holder the right, but not the obligation, to buy a specific amount of an asset at a predetermined price within a specified period.

Put Option

A financial deal that provides the holder the privilege, yet not the compulsion, to offload a specified quantity of a basic asset at a fixed rate within an established timeframe.