Yuri utilized every possible financing option to get his new business

QUESTION

Yuri utilized every possible financing option to get his new business started. Now, after two years and fantastic growth, he is preparing to sell the business at a substantial profit.

Which of the following will NOT realize additional profit from Yuri’s sale of the business?
A) family investors
B) bank lender
C) angel investors
D) venture capitalists
E) friendly investors

ANSWER

Answer: B
Explanation: B) Angel investors and venture capitalists expect to reap profits from the sale of a business. Family and friends should be offered some type of additional compensation for supporting Yuri in his startup days. A bank will only have its loan repaid and will earn the amount of interest reflected in the loan terms.