Question

Select the correct texd in the passage.

Joe needs external financing for his company. He analyzed the financial statements of various companies and arrived at the conclusion that equity
finance is a better option. Which sentences in the given passage supports his view?
Equity VIs Debt
The investors in equity can only realize profit from their investment if the business is doing well. Lenders of a loan are paid a certain amount at regular
intervals. The right venture capitalists could bring their experience into the business as they are part owners. Management time is invested in keeping
investors informed about the policies of the company. The lenders do not have a claim to equity in the business
Reset
Next

Answer 1

"The investors in equity can only realize profit from their investment if the business is doing well." and "The right venture capitalists could bring their experience into the business as they are part owners." support Joe's view that equity finance is a better option.