Jeff is making plans for his company's future. Over the next five years, he wants the company to reach a specific size. As a result, he decided to borrow $20 million from another company and pay it back in three years. Jeff likes to sell shares since the investor takes on all of the risk; if the business fails, he loses everything. As a result, an investor contributes his money to a company in exchange for ownership and a claim on future earnings.
