If the amount of money provided by family members or friends is small and in the form of equity financing,they do not have an ownership position in the venture.

Question

Quizplus · Accepted Answer

If family members or friends provide equity financing, they would have an ownership position in the venture, even if the amount of money provided is small. Equity financing involves exchanging ownership shares in the company for capital, which means any person who provides equity financing becomes a part-owner of the venture.

If the Amount of Money Provided by Family Members or Friends