BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

ENTREPRENEURIAL DEVELOPMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ is a form of financing especially for funding high technology, high risk and perceived high reward projects
A
Fixed capital.
B
Current capital.
C
Seed capital.
D
Venture capital.
Explanation: 

Detailed explanation-1: -Venture capital is the capital provided by firms of professionals who invest alongside management in young, rapidly growing or changing companies that have the potential for high growth. Venture capital is a form of equity financing especially designed for funding high risk and high reward projects.

Detailed explanation-2: -Venture capital is a form of funding that pools together cash from investors and lends it to emerging companies and startups that the funds believe have the potential for long-term growth. Venture capital investments typically involve high risk in exchange for potentially high reward.

Detailed explanation-3: -The Correct Answer Is: Venture capital.

Detailed explanation-4: -Venture capital financing is commonly associated with provision of equity investment for a predetermined time period in small/medium business with high growth potential and high reward but which could entail high risk.

Detailed explanation-5: -Types of Venture Capital Funds The 3 main types are early stage financing, expansion financing, and acquisition/buyout financing.

There is 1 question to complete.