Altitel Inc.has difficulties with managing operating costs of their company due to shortage of short-term finance.The company needs liquid assets and some capital to improve its performance in the market.Samuel,an established businessman,raises money from wealthy individuals and invests it in the company.He also gives the company critical advice about managing their processes effectively.In exchange,Samuel owns a small part of the company.In the context of the sources of financing,Samuel is a
A)leverage advisor.
B)risk-return trader.
C)venture capitalist.
D)hedge fund consultant.

Question

Quizplus · Accepted Answer

Samuel is acting as a venture capitalist by providing funding and advice to Altitel Inc. in exchange for equity in the company. Venture capitalists invest in companies that are typically in the early stages of development and offer potential for high growth.