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Stefan Wants to Start a New Business, but His Bank

question 23

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Stefan wants to start a new business, but his bank will not lend him the money he needs. Stefan saw an advertisement sponsored by a business organization that provides financing for early-stage, high-potential growth companies. The organization sponsoring the advertisement would be considered a _____.


Definitions:

Limited Liability

A legal structure that protects individual investors or business owners from being personally responsible for the debts and liabilities of the business beyond their investment.

Partnership Form

A legitimate business structure where two or more partners collaborate in managing the firm and splitting the profits.

Equity Capital

The amount of money that is invested in a company by its owners, as opposed to borrowed funds or debt.

Tax-Deductible

A portion of expenses that can be subtracted from gross income to reduce taxable income.

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