Many Investors Suggest Structuring A(n) _____ Deal for Friends and Family

question 42

Multiple Choice

Many investors suggest structuring a(n) _____ deal for friends and family because this tactic avoids having to place a valuation on the company that is likely to be wrong.

• A) due diligence
• B) convertible debt
• C) valuation divergence
• D) impact investing
• E) convertible equity

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Definitions:

Type A Personality

A personality type that is hardworking, scheduled, and impatient.

Hardworking

Characterized by diligent and resilient effort or exertion towards achieving goals and completing tasks.

Scheduled

Planned or appointed to occur at a specific time or date; organized in advance according to a timetable or agenda.

Type A Personality

A temperament characterized by high levels of competitiveness, self-imposed stress, impatience, and a sense of urgency.