Which of the following is true of venture capital? Venture capital is comparable to a bank...
- Venture capital is comparable to a bank loan, which must be repaid over time.
- On average, venture capital investors seek a return on their investment in about five years.
- One way venture capitalists evaluate potential investments is by analyzing a company's share price.
- Venture capitalists reserve the right to sell their portion of company shares before an IPO.
Homework Answers
The correct Options is second option . On average venture capital investors seek a return on their investments in about five years.
The venture capitalists expect a ten times return of capital over five years
The other options are incorrect.
Option 1 is incorrect as venture capital is nor repaid
over a period of time like bank loan
option 3 is incorrect investors generally do not invest in
companies that are already traded in stock markets but invest in
startup companies.
option 4 is incorrect.
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Which of the following is true of venture capital?
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Drop Down Answers:
1. a best efforts or an underwritten
2. 4 or 10
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Drop Down Answers:
1. a best efforts or an underwritten
2. 4 or 10
3. a selling group or an unsyndicated group
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