A Fund That Takes Household Savings and Puts Them into High-Risk

question 121

Multiple Choice

A fund that takes household savings and puts them into high-risk ventures in exchange for a share of the profits if the new business succeeds is a(n)

• A) business capital fund.
• B) innovation capital fund.
• C) risk capital fund.
• D) venture capital fund.

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Definitions:

Petty Cash Account

A modest sum of money maintained readily available for covering various minor outlays instantly.

Establishing

The process of setting up or founding something, such as a new business, system, or set of rules.

Replenishing

The act of refilling or restocking to maintain an adequate level of supplies or inventory.

Voucher System

A control mechanism in accounting that uses vouchers as evidence for transactions before they are posted to accounts, enhancing financial accuracy and integrity.