When Seeking Financial Backing from a Venture Capitalist, a Small

question 262

Multiple Choice

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

• A) charge an interest rate that is much higher than any other lender.
• B) not be interested in the management of the business.
• C) expect an ownership stake in the company in exchange for financial backing.
• D) demand that the money be repaid within 90 days or less.

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Definitions:

Top-Down Change

Organizational change initiatives that are initiated and guided by the top management or leadership of an organization.

Crisis Management

The process by which an organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders.

Unplanned Change

Alterations or modifications that occur without prior planning or expectation, often requiring immediate response or adaptation.

Negative Consequences

Detrimental outcomes that result from actions or decisions.