ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is an advantage to an entrepreneur of using venture capital to secure finance for a business start-up?
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100% of profits are always retained by the entrepreneur
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Control is never lost within the business
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Large amounts of finance are usually available
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Theventurecapitalistfundswillneverneedrepaying
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Explanation:
Detailed explanation-1: -Venture capital is financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies. Venture capitalists receive an ownership interest and a voice in management in return for their money.
Detailed explanation-2: -No security necessary. Venture capitalists offer an opportunity for expansion. Venture capitalists are helpful in building networks. Businesses can raise a large amount of capital. Venture capital is a source of valuable guidance, consultation, and expertise. No obligation to repay the venture capital. More items •05-May-2022
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