ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which type of business would venture capitalists be usually interested in investing funds?
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An established private limited company
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A small business with slow sales growth potential
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A well-known franchise operation
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An entrepreneurial start-up with the possibility of high profits
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Explanation:
Detailed explanation-1: -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-2: -d) Start-up companies with the potential to grow to need a certain amount of investment. Wealthy investors like to invest their capital in such businesses with a long-term growth perspective. This capital is known as venture capital and the investors are called venture capitalists.
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