Which of the Following Is Financing Obtained from Investment Companies

question 57

Multiple Choice

Which of the following is financing obtained from investment companies that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money?

• A) equity financing
• B) entrepreneurial capital
• C) venture capital
• D) debt financing

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Definitions:

Strip Bond

A bond that has had its coupon payments and principal repayment separated, creating zero-coupon securities from a regular bond.

Yield to Maturity

The total return anticipated on a bond if the bond is held until its maturity date, taking into account both interest payments and capital gain or loss.

Term to Maturity

The remaining time until a debt instrument, such as a bond or loan, reaches its due date and the principal must be repaid.

Priced

Determination of the value or amount that must be paid to acquire a good, service, or asset.