Which One of the Following Best Describes a Private Placement

question 1

Multiple Choice

Which one of the following best describes a private placement?

• A) Interim financing for a new, high-risk entity
• B) Long-term loan by a limited number of investors
• C) Two-year direct business loan
• D) 3-year loan to a firm by its original founder
• E) New equity issue offered to current shareholders

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Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product or service.

Producing Unit

A part of a company or a machine that is responsible for manufacturing or creating goods.

Units

A standard measure or quantity used to specify or quantify the amount of a product, service, or resource.

Prices

The amount of money required to purchase goods or services.