Asked by Dante Compean on Feb 18, 2024
Verified
If an entrepreneur issues convertible debt,he or she will lose control of the company.
Entrepreneur
An individual or a group who creates something new—a new idea, a new item or product, a new institution, a new market, a new set of possibilities.
- Analyzing the potential impact of convertible debt on the ownership and control of a company.
- Evaluating the trade-offs between raising capital through convertible debt and maintaining control of the company.
- Understanding the concept of convertible debt and its implications for entrepreneurs.
Verified Answer
KM
Kourtney MooreFeb 18, 2024
Final Answer :
False
Explanation :
Issuing convertible debt does not necessarily result in loss of control of the company. It may result in dilution of ownership, but control can still be maintained through various mechanisms such as voting rights or board representation.
Learning Objectives
- Analyzing the potential impact of convertible debt on the ownership and control of a company.
- Evaluating the trade-offs between raising capital through convertible debt and maintaining control of the company.
- Understanding the concept of convertible debt and its implications for entrepreneurs.
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