Gary Is in the Process of Using Debt Financing to Fund

question 71

Multiple Choice

Gary is in the process of using debt financing to fund his new venture.In this case,he is most likely to:

• A)borrow loans from banks.
• B)obtain funding from venture capitalists.
• C)secure funding from angel investors.
• D)exchange a share of ownership in his company for money.

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Definitions:

Certificated Security

A security that is represented in physical, paper form rather than in electronic or digital form.

Security Entitlement

A legal right or interest that an individual has in a financial asset that is held by a securities intermediary.

Chattel Paper

A document or record that evidences both a monetary obligation and a security interest in or lease of specific goods.

Tangible

Refers to physical objects or assets that can be seen and touched.