An investor will provide money for a start-up business only if the entrepreneur will agree to giving the investor the right to approve any purchase or sale of assets totaling $100,000 or more. This is know as
A) a proforma statement.
B) a breakeven statement.
C) a mandatory redemption.
D) a covenant.
E) a business angel.

Question

Quizplus · Accepted Answer

This scenario describes a covenant, which is a requirement or condition agreed upon by the entrepreneur and investor. In this case, the covenant is that the investor has the right to approve any purchase or sale of assets totaling $100,000 or more.

An Investor Will Provide Money for a Start-Up Business Only