BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
venture capital is another source of equity finance. Venture capital has proved to be a superior form of finance in growing and innovative industries
A
TRUE
B
FALSE
Explanation: 

Detailed explanation-1: -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-2: -Aside from the financial backing, obtaining venture capital financing can provide a start-up or young business with a valuable source of guidance and consultation. This can help with a variety of business decisions, including financial management and human resource management.

Detailed explanation-3: -Detailed Solution. The correct answer is A long-term start-up capital provided to new entrepreneurs. It is a type of private equity provided by wealthy investors to small business companies that are believed to have long-term growth potential.

Detailed explanation-4: -Private equity funds refer to investments made by investors for investment purposes. Whereas, venture capital refers to funding to those ventures that are backed by new entrepreneurs, have high risks, and who require money to shape their ideas.

There is 1 question to complete.