ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Government programs
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Bonds
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Angel investors
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Friends and relatives
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Detailed explanation-1: -Answer and Explanation: Explanation: Stock does not represent a form of debt finance. Stocks are an equity investment.
Detailed explanation-2: -Loans/convertible debentures from angel investors and others Early angel investors, founders, family and friends may provide financing through loans or convertible debentures. They are secured against the business assets and, in some cases, against the founders’ personal assets.
Detailed explanation-3: -Angel investment is a form of equity financing–the investor supplies funding in exchange for taking an equity position in the company. Equity financing is normally used by non-established businesses that do not have sufficient cash flow or collateral with which to secure business loans from financial institutions.
Detailed explanation-4: -The correct answer is Equity. Angel investors are also called informal investors, angel funders, private investors, seed investors or business angels. These are individuals who inject capital for startups in exchange for ownership equity or convertible debt.