Which of the following is an advantage of venture capital?
a.) Companies are obligated to repay venture capital funds, but at a much lower interest rate than a typical bank loan.
b.) Venture capital investors are guaranteed a return on their investment, although the return can vary from small to quite large.
c.) Once a company receives venture capital funding, it is free to operate without further interference or scrutiny.
d.) Although venture capital investments are typically high risk, they offer the potential for large returns for investors.
Option D Although venture capital investments are typically high risk, they offer the potential for large returns for investors is right answer
Venture capital means it is a form of private equity and a type of financing for startup companies and other small companies that an investor provides. It also provides financing for merging companies that having high growth potential in the future. It is mainly in long term growth prospective. The investors are known as venture capitalist. There are many individual investors and institutional investors that provide capital for companies to operate. Generally, venture capital investments are typically high risk because it is not secured. If the business making loss or fails, the investment is lost. But they offer the potential for large returns for investors.
Which of the following is an advantage of venture capital? a.) Companies are obligated to repay...
Which of the following is an advantage of venture capital? Venture capital is typically easy to secure even with the most basic of business plans. New companies can access large amounts of upfront capital that does not have to be repaid, as a loan would be. There are no upfront costs to a company seeking venture capital funding. Venture capital investments typically carry a small amount of risk and generate small to moderate returns.
Which of the following is true of venture capital? 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.
Which one of the following statement(s) about venture capital is true? Venture capital helps private firms to go public Venture capital helps firms to issue bond Their mainly fund startup firms in order to capture the explosive return from the very few companies that can succeed. Large corporations are not allowed to be involve in venture capital business
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