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Fiona's Small Catering Business Requires More Financing Than She Can

Question 44

Multiple Choice

Fiona's small catering business requires more financing than she can provide from her savings. As a result, she is looking for investors to provide financing in exchange for stock ownership. What is a disadvantage of this arrangement?


A) Fiona may lose her business to venture capitalists.
B) Fiona will have to give complete control of her business to the investors until she can pay them back.
C) Fiona will have to share the profits of her business.
D) Fiona may not be able to find venture capitalists who will pay the high prices she is asking for her stock.
E) Fiona could lose her personal assets if the company isn't profitable.

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