Which of the following statements is incorrect regarding equity funding?
A) Equity investors expect to get their money back, along with a substantial capital gain, through the sale of their stock.
B) Angel investors are a common source of equity funding.
C) Equity funding is not a loan.
D) Equity investors are very demanding.
E) Equity investors fund the majority of the plans they consider.

Question

Quizplus · Accepted Answer

This statement is incorrect. Equity investors do not fund the majority of the plans they consider. They carefully evaluate potential investments and only choose a small percentage to fund.

Which of the Following Statements Is Incorrect Regarding Equity Funding