A provision that allows lenders to acquire equity at a specific price is known as a(n):
A)factor
B)warrant
C)venture lease
D)equity carve-out

Question

Quizplus · Accepted Answer

A warrant is a provision that allows lenders to acquire equity at a specific price. Factors are financial institutions that purchase accounts receivable at a discount. Venture lease is a financing arrangement that enables a start-up to acquire equipment without paying upfront. Equity carve-out is a process of converting a subsidiary's equity into a separate publicly-traded entity.

A Provision That Allows Lenders to Acquire Equity at a Specific