Altitel Inc.has difficulties with managing operating costs of their company due to shortage of short-term finance.The company needs liquid assets and some capital to improve its performance in the market.Damon,an established businessman,raises money from wealthy individuals and invests it in the company.He also gives the company critical advice about managing their processes effectively.In exchange,Damon owns a small part of the company.In the context of the sources of financing,Damon is a _____.
A)leverage advisor
B)risk-return trader
C)venture capitalist
D)hedge fund consultant

Question

Quizplus · Accepted Answer

Damon is a venture capitalist, as he is providing funding and advice to a company in exchange for a small ownership stake. A leverage advisor typically helps companies obtain debt financing, a risk-return trader manages investments for a profit, and a hedge fund consultant provides advice to hedge funds. None of these roles fit Damon's description.