Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In order to expand distribution worldwide, the company whose product produces lush green foliage needs serious funding. The handful of seed scientists that own the company are seeking ____________, but understand that they will relinquish a sizeable share of ownership in order to obtain the funds

Question

Quizplus · Accepted Answer

The best choice for Arborview Plant Science Company is venture capital. Venture capitalists provide funding to start-up companies with high growth potential in exchange for equity ownership. The company's innovative product has a large global market potential, making it an attractive investment opportunity for venture capitalists. While the company will have to relinquish a sizeable share of ownership, it is an acceptable trade-off for obtaining the funding necessary to expand distribution worldwide. Debenture capital, international line of credit, and leverage are not as suitable for this situation.

Arborview Plant Science Company Has Invented a Drought Resistant Grass