Cheng Is in the Process of Using Debt Financing to Fund

question 82

Multiple Choice

Cheng is in the process of using debt financing to fund his new venture.In this case,he is most likely to

• A)borrow loans from banks.
• B)obtain funding from venture capitalists.
• C)secure funding from angel investors.
• D)exchange a share of ownership in his company for money.

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Definitions:

Scienter

Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.

Shares

Represents units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Popular

The term 'popular' is used to describe something widely liked, admired, or accepted by a large number of people.

Seller's Talk

A term used to describe the verbal communication or pitch by a seller aimed at persuading potential buyers to make a purchase.