An investor will provide money for a new business only if she can get the money back when she wants it. This is known as
A) equity right.
B) proforma right.
C) geographical investing right.
D) voting right.
E) mandatory redemption right.

Question

Quizplus · Accepted Answer

The scenario described in the question refers to an investor who wants to ensure that they can get their money back when they want it. This is known as a mandatory redemption right. This means that the investor has the right to require the company to redeem their shares at a specified time or upon a specified event, such as a liquidity event like an IPO or acquisition. This gives the investor some measure of control over their investment and the ability to get their money back under certain circumstances.

An Investor Will Provide Money for a New Business Only