________ Funds Are Received by a Business in Exchange for a Percentage

question 55

Multiple Choice

________ funds are received by a business in exchange for a percentage ownership of the company.

• A)Asset-based
• B)Venture capital
• C)Equity
• D)Tangible

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Definitions:

Premium

The amount by which the price of a financial asset exceeds its intrinsic value or the additional cost above the nominal value, such as in insurance or bonds.

Unsecured Bond

An unsecured bond, unlike a secured bond, has no collateral backing and relies solely on the issuer's creditworthiness for support.

Restrictive Covenants

Clauses in contracts that restrict the actions of parties, often found in employment and property agreements to protect business interests or property use.

Bond Indentures

The legal and binding agreement between a bond issuer and the bondholders detailing the terms and conditions of the bond.