CS Professional · Strategic Management and Corporate Finance · Raising of Funds - Private Funding
Which of the following is generally NOT regarded as a source of private funding for a company?
A public issue of shares through an IPO is not private funding. Angel investors, private equity funds and negotiated bank or institutional term loans are privately arranged with identified providers, while an IPO invites the general public to subscribe.
- AAngel investors
- BPrivate equity funds
- CTerm loans from banks and financial institutions
- DA public issue of shares through an IPOCorrect
Explanation
Angel investors, private equity funds and bank or institutional loans are negotiated, privately arranged sources of capital. An IPO is an offer to the public at large and is therefore a public funding route, not private funding.
Did you get it right without looking?
One question tells you little. A timed set on Raising of Funds - Private Funding shows your real accuracy, how long you take and where you lose marks.
More Raising of Funds - Private Funding questions
- Sagar Pharma Ltd, an unlisted public company, decides to issue shares by private placement to identified persons. Which statement is correct…
- Arjun Engineering Ltd raises Rs 50 crore through a private equity investment, issuing 25 lakh equity shares to the investor at Rs 200 per sh…
- Which feature distinguishes privately placed non-convertible debentures from a term loan taken from a bank?
- Meridian Components Ltd offers equity shares by private placement. Which of the following is a legal requirement under the Companies Act, 20…
- Meera Textiles Pvt Ltd, an unlisted company, needs funds quickly with minimal disclosure and wants only a few sophisticated investors who ca…
- Under Section 42 of the Companies Act, 2013, a private placement offer-cum-application issued to an identified person carries which feature …