To Attract Capital from Outside Investors, a Firm Must Offer

question 53

True/False

To attract capital from outside investors, a firm must offer potential investors an expected return that is commensurate with the level of risk that they can bear.

---

Definitions:

Strict Liability

A legal doctrine holding individuals or entities responsible for damages or injuries caused by their actions or products, regardless of negligence or intent.

Contributory Negligence

A legal doctrine that can reduce the claimant's ability to recover damages if they are found partly at fault for the incident or harm.

Reasonable Person Standard

A legal benchmark used to determine how an average person would responsibly act in certain circumstances.

Physical Disabilities

Conditions that limit a person's physical capacity, ranging from mobility issues to dexterity or sensory impairments.