Skip to content

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.

  1. AAngel investors
  2. BPrivate equity funds
  3. CTerm loans from banks and financial institutions
  4. 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