asked 29.9k views
5 votes
Joe works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position. What type of financing does this describe?

asked
User Moala
by
8.4k points

1 Answer

7 votes

Answer: Participation

Step-by-step explanation:

Participation financing is a firm of financing whereby a loan is shared by several parties because such loans are too huge and a party cannot take the loan alone.

Since we are informed that works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position, this means that participation financing is being practiced.

answered
User Xhg
by
8.2k points
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