n NISM Certifications
X NISM Series X
Medium

Alternative investments are mainly used by which types of businesses?

Practice question from NISM Series XB- Investment Adviser (Level 1) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Blue chip companies listed on stock exchanges

  2. B

    Companies with high promoter shareholding

  3. C

    Very working capital intensive businesses

  4. Businesses that find it difficult to tap traditional sources of growth capital

    Correct answer

Why this is the answer

Such businesses often rely on alternative investments like private equity or venture capital due to limited access to conventional funding options.

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