Andrea started her own company 15 years ago when she launched a line of women's garments. Her firm was successful and grew for a decade. Then sales began to stagnate and subsequently fall. Now her firm is on the verge of bankruptcy. She is willing to give up partial ownership in order to gain funding for the firm to survive its current crisis. Which of these is her MOST likely source of funding?

Question

Quizplus · Accepted Answer

Private equity is the most likely source of funding for Andrea's company because private equity firms specialize in providing capital to firms that are in distress or need restructuring, often in exchange for a significant stake in the company. Unlike venture capital, which typically invests in early-stage companies, or IPOs and bonds, which are more suited to companies in a stronger financial position, private equity can provide the substantial funds and management expertise needed to turn around a struggling company.

Andrea Started Her Own Company 15 Years Ago When She