Question

Which financing is also known as “risk capital”? mezzanine loans subordinate debts equity capital senior debts bonds

Answer 1

Which financing is also known as “risk capital”? Mezzanine loans/financing. These are given out by financial institutions and are considered to be true risk capital because they rely on long term cash flows. Risk capital is also known as venture capital. There is a large amount of risk when a new business starts or is expanding. Companies will use mezzanine loans/financing to finance these projects.

Answer 2

I'm not sure what the correct answer is but A. mezzanine loans was not the correct answer.