Which of the following are major sources of equity capital for start-up companies?
A)Personal assets
B)"Love money"
C)Government loans
D)Both A and B

Question

Quizplus · Accepted Answer

Personal assets and "love money" are the two major sources of equity capital for start-up companies. Personal assets include savings, real estate equity, and other personal property that can be liquidated to obtain capital. "Love money" refers to capital invested by family and friends, who are often willing to provide funding with few or no strings attached. Government loans are a form of debt financing, not equity financing, and therefore not a major source of equity capital for start-up companies.

Which of the Following Are Major Sources of Equity Capital