Red Oak Capital Inc. recently funded Feast LLC, a rapidlygrowing chain of restaurants, in exchange for 43 percent share of ownership. Red Oak Capital is an example of a(n) _____.

Question

Red Oak Capital Inc. recently funded Feast LLC, a rapidly­growing chain of restaurants, in exchange for 43 percent share of ownership. Red Oak Capital is an example of a(n) _____.

Quizplus · Accepted Answer

Red Oak Capital Inc. funding a rapidly-growing chain of restaurants in exchange for ownership shares is characteristic of a venture capital firm, which typically invests in high-growth startups with significant potential for returns on investment.