alleryStart learning →How does a lender differ legally from a venture investor?
AA share of the final exit proceeds
BA board seat in the borrowing company
CInterest and repayment whatever the outcome
DDividends that track profit growth
Answer & Solution
Correct answer: C. Interest and repayment whatever the outcome
A lender holds a contractual claim to interest and principal, while a venture capitalist is a shareholder whose return depends on how the business performs.
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