The main difference between project finance and other forms of lending is:Question 8Select one:a.lenders base their participation on expected future cash flows and assets of the project.b.lenders take a major equity stake in the project.c.the project company, which is set up as a separate legal entity, relies heavily on venture capitalists for equity funding.d.the lenders have a claim on the assets of the project as well as the sponsors.

Which of the following statements are true for project finance (select all that apply):Group of answer choicesCapital investment decisions are more transparent to creditors in a corporate finance than in project financeThe cost of an average financial transaction is lower with the corporate finance than with project financeThe cost of capital is generally higher with project finance than corporate financeInvestors have more visibility into dividend policies with project finance than with corporate finance

Multiple Choice QuestionWhich of the following determines whether firms will use borrowed funds for investment projects?Multiple choice question.The firms' operational abilities to produce particular goods or servicesThe demand by customers for a popular good or serviceThe interest rate in relation to the rate of return on the projectManagerial decisions based only upon accounting profits

Does the project sponsor fund the project? 1 pointYes. The project sponsor plays a vital leadership role, which always includes funding the project.No. The project sponsor plays a vital leadership role but does not fund the project.Sometimes. The project sponsor plays a vital leadership role, which sometimes includes funding the project.

True or False: Equity financing through venture capitalists is typically pursued during the startup's idea stage.

Venture Capital are companies/firms that loan you money based on your business plan.Group of answer choicesTrueFalse