Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely
A)borrow funds to be returned on a designated maturity date.
B)give up a share of its ownership.
C)pool funds to invest in a business venture.
D)pay periodic dividends.

Question

Quizplus · Accepted Answer

Venture capital financing typically involves giving up a share of ownership in the company in exchange for the funds provided by investors. This is different from traditional loans or securities issuance, where companies might have to pay back the borrowed amount with interest or issue dividends to shareholders.

Instead of Issuing Securities, Artificial Intelligence Inc