BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE
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Either A or B
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None of the above
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Detailed explanation-1: -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-2: -Venture capital financing is a long term investment. It generally takes a long period to encash the investment in securities made by the venture capitalists. Thus, options A and B are False.
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: -Big Risks, Big Rewards This big return potential is the result of the incredible amount of risk inherent in new companies. Not only will 90% of VC investments fail, but there is a whole host of unique risk factors that must be addressed when considering a new investment in a startup.