Investor Groups That Provide Funding in Exchange for an Ownership

question 48

Multiple Choice

Investor groups that provide funding in exchange for an ownership stake in the firm are called _____.

• A) credit unions
• B) venture capital firms
• C) hedge fund managers
• D) mutual fund executives
• E) greenfield investors

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Definitions:

Scenario Analysis

A method of evaluating potential future scenarios by contemplating various possible results, often used for strategic planning purposes.

Simulation Analysis

A statistical method that involves running multiple scenarios of a model in order to estimate the probability of different outcomes.

Sensitivity Analysis

A financial modeling tool used to evaluate how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project.