When using private placement funding the entrepreneur must disclose all information as accurately as possible.

Question

Quizplus · Accepted Answer

The entrepreneur must disclose all information to potential investors in a private placement memorandum (PPM) and should strive to be as accurate and comprehensive as possible. This includes providing information on the business, management team, financials, risks, and any other material information that could impact investment decisions. Failing to disclose material information could lead to legal and financial consequences for the entrepreneur and the company.

When Using Private Placement Funding the Entrepreneur Must Disclose All