ENTREPRENEURSHIP

ENTREPRENEURIAL FINANCE

SOURCES OF FUNDING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Specialist organisations that are willing to invest in high risk businesses that have good profit potential.
A
Business Angels
B
Banks
C
Venture Capitalists
D
Private investor
Explanation: 

Detailed explanation-1: -Venture capitalists are in the business of investing money in businesses-small businesses, mid-sized companies and global enterprises-any company that shows potential for significant growth over the short term.

Detailed explanation-2: -The majority look to invest in well-managed companies, that have a fully-developed business plan and are poised for substantial growth. These investors are also likely to offer to fund ventures that are involved in the same or similar industries or business sectors with which they are familiar.

Detailed explanation-3: -Venture capital financing is a high-risk, high return investment methodology in which the money is invested in the form of equity in a company that is privately held, i.e., not publicly traded on a stock exchange, and is planned for three broad stages of the company – idea, expansion, and exit stage.

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