Accepting an equity stake from an investor makes the owner accountable to that investor when founding and managing a business.

Question

Quizplus · Accepted Answer

When an investor acquires equity in a business, they become a part-owner and have a say in the management of the company. The owner becomes accountable to the investor and is obligated to make decisions that are in the best interest of the business and its stakeholders.

Accepting an Equity Stake from an Investor Makes the Owner