________ Are Firms That Raise Money from Investors and Then

question 6

Multiple Choice

________ are firms that raise money from investors and then use this money to make investments in new firms.

• A)Angel investors
• B)Venture capitalists
• C)Banking institutions
• D)Entrepreneurs
• E)Insurance companies

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Definitions:

Non-amortizable Debt

Debt that does not require regular principal payments over its life; interest may be paid periodically, but the principal is repaid at maturity.

Repayment

The act of paying back money previously borrowed from a lender.

Semiannually

Occurring or done twice a year, typically every six months.

Debt Investments

Investments in bonds or other forms of debt securities that provide the investor with interest income.