A Private Equity Fund Is a Financial Intermediary That

question 29

Multiple Choice

A private equity fund is a financial intermediary that

• A)Invests in the equity of private businesses
• B)Provide financing and help nurture mature and troubled companies
• C)Both A & C
• D)Does not have the same need for financial disclosure

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Definitions:

Note Receivable

A written promise for amounts to be received by a debtor, acknowledging a debt to be paid to the creditor at a future date.

Maturity Date

The specific date on which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.

Note Dated

Indicates the specific date on which a note payable, receivable, or other legal financial document becomes effective.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.