Which of the Following Statements Is Incorrect Regarding Equity Funding

question 35

Multiple Choice

Which of the following statements is incorrect regarding equity funding?

• A) Equity investors expect to get their money back, along with a substantial capital gain, through the sale of their stock.
• B) Angel investors are a common source of equity funding.
• C) Equity funding is not a loan.
• D) Equity investors are very demanding.
• E) Equity investors fund the majority of the plans they consider.

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Definitions:

Seriously Affected

Significantly impacted or altered in a negative manner.

Carbon Monoxide

A gas that is clear, has no smell, and is poisonous, resulting from the incomplete burning of materials containing carbon.

Anaerobic Respiration

is a process by which cells generate energy in the absence of oxygen, using other electron acceptors to metabolize substrates.

Cigarette Smoking

The act of inhaling smoke from burning tobacco wrapped in paper; a leading cause of numerous health issues, including lung cancer.