Which of the Following Is a Defining Characteristic of Venture

question 104

Multiple Choice

Which of the following is a defining characteristic of venture capital start-ups?

• A)The businesses are well-funded by angel investment.
• B)The development plan of the business is oriented around positive cash flow.
• C)The management structure of the business is designed to take advantage of the skills of the founder.
• D)The business is oriented toward the personal goals of the founder.

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Definitions:

Competitive Firm

A company that operates in a market where it has to price its goods or services according to market conditions due to the presence of many competitors.

Negative Economic Profit

A situation where a firm's total revenues are less than the sum of its explicit and implicit costs, indicating a loss in economic terms.

Perfectly Competitive

A market structure where many firms offer products that are similar and entry and exit from the market are easy, leading to price being determined by supply and demand.

AVC

Average Variable Cost, calculated by dividing total variable costs by the quantity of output produced.