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    Question

    Which of the following funds raised by a company would

    be classified as Quasi Equity? ┬а
    A Unsecured loans from friends and relatives Correct Answer Incorrect Answer
    B Unpaid share capital Correct Answer Incorrect Answer
    C Capital reserve Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Quasi-equity is a hybrid form of finance with characteristics of bothтАп de bt тАпand equity investments. Quasi-equity offers non-dilutive equity risk capital that is paid back based on the performance of the company.тАп ┬а Q uasi-equity financing тАпwould include either being an unsecured loan or being a flexible loan repayment schedule. Mezzanine debt and junior debt are examples of quasi-equity financing as they are both usually unsecured and flexible when it comes to the repayment schedule of the loan. ┬а

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