BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ type of financing is usually done for financing high risky businesses
A
leasing
B
veture capital
C
hire purchase
D
factoring
Explanation: 

Detailed explanation-1: -Venture capital is capital that is invested in a business with a high risk of failure but with the potential for high returns. It is typically provided by investors, such as venture capitalists, private equity firms, or angel investors, and is usually used to fund early-stage companies and startups.

Detailed explanation-2: -Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.

Detailed explanation-3: -Venture capital refers rather to investments in projects with high growth potential, high risk and return and/or in which there is a dominant innovative and technological aspect. The concept of venture capital does not usually include the entrepreneur’s personal contribution.

Detailed explanation-4: -Venture Capital They provide capital to young businesses in exchange for an ownership share of the business. Venture capital firms usually don’t want to participate in the initial financing of a business unless the company has management with a proven track record.

There is 1 question to complete.