Which of the Following Is True of Venture Capital Firms

question 29

Multiple Choice

Which of the following is true of venture capital firms?

• A) They rely more heavily on the business plan than on the executive summary in making investment decisions.
• B) They are a source of debt financing.
• C) They prefer to back fast-growth industries.
• D) They are engaged in assisting disadvantaged businesses.

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Definitions:

Financial Statement

A financial statement is a formal record of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders in a company.

Ending Capital Balance

Ending capital balance is the amount of money a company has in its capital account at the end of a financial period after all financial transactions have been accounted for.

Beginning Capital Balance

The amount of capital at the start of a financial period before any transactions have been accounted for during the period.