Joseph Coulter needs long-term financing for his company. He contacts Funders Group, which is willing to provide funding in exchange for an ownership stake, an active role in management of Joseph's company, and an opportunity for a large return on its investment. Funders Group is offering ________ capital.

Question

Quizplus · Accepted Answer

Venture capital involves providing funding in exchange for ownership and management roles, as well as the potential for a large return on investment. Debenture involves issuing debt, leverage involves the use of debt to finance operations, and retained capital refers to profits that are reinvested in the business rather than distributed to shareholders.

Joseph Coulter Needs Long-Term Financing for His Company