Question

__________ refers to the investment that shareholders make in a company that cannot be recovered if the company fails and goes bankrupt. __________ refers to the investment that shareholders make in a company that cannot be recovered if the company fails and goes bankrupt.

Answer 1

Answer:

Risk capital

Explanation:

Risk capital relates to funds allocated to risky operation and used to invest heavy-risk, elevated-reward.

Diversification is key to a successful risk capital investment, because the prospects of each investment appear to be undetermined in nature, although the yields may be far above average when an investment is successful.