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      Question

      Which of the following funds raised by a company would

      be classified as Quasi Equity?  
      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 both  de bt  and equity investments. Quasi-equity offers non-dilutive equity risk capital that is paid back based on the performance of the company.    Q uasi-equity financing  would 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.  

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