Kaitlyn's Company Needs to Obtain Funds in Order to Keep

question 59

Multiple Choice

Kaitlyn's company needs to obtain funds in order to keep the business going;however,she does not want stockholders influencing the direction of her company.What type of financing should Kaitlyn acquire?

• A)angel investor
• B)combination of debt and equity capital
• C)debt capital
• D)equity capital

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Definitions:

Liquidate Resources

Refers to the process of converting assets or resources into cash or cash equivalents by selling them in the market.

Risk Aversion

The tendency to avoid taking risks and prefer safer options.

Fixed Income

A type of investment security that pays investors fixed interest or dividend payments until its maturity date.

Incremental Theorists

Individuals who believe that personal qualities such as intelligence and skills can improve over time with effort and practice.