Instead of Issuing Securities, Artificial Intelligence Inc

question 133

Multiple Choice

Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely

• A)borrow funds to be returned on a designated maturity date.
• B)give up a share of its ownership.
• C)pool funds to invest in a business venture.
• D)pay periodic dividends.

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Definitions:

Dividend Tax Credit

A tax credit that investors can claim in many jurisdictions for taxes already paid by a corporation on the dividends it distributes to shareholders.

Tax Legislation

Laws and regulations governing the imposition, administration, and enforcement of taxes by the government.

Letters Patent Corporation

A document issued by a government granting rights, privileges, or status to an individual or company, historically used to establish corporations.

Limited Liability Partnership

A partnership where some or all partners have limited liabilities, meaning they are not personally responsible for the debts of the business.