Question: Question 2 ( 1 point ) PIE Inc. is in the development stage of its business cycle. It is currently in discussions with some potential
Question point
PIE Inc. is in the development stage of its business cycle. It is currently in discussions with some potential investors.
Which of the following statements correctly identifies a conflict that might arise in deciding on the source of capital to be raised?
a The investors are only willing to invest in equity, but the shareholders do not want to dilute their ownership.
b One of the investors is willing to provide debt, but the existing shareholders think the cost is too high.
c One of the investors is willing to provide a loan, but the existing shareholders do not like the requirement of bonus interest having to be paid.
d One of the investors is willing to invest in equity but is only willing to provide of the amount of the shareholder's anticipated needs.
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