Which of the Following Statements Is True About Venture Capital

question 9

Multiple Choice

Which of the following statements is true about venture capital start-ups?

• A)They refrain from developing operations in multiple locations very shortly after the initial investment.
• B)They are funded by angel investors who invest more than $2 million and expect extraordinary returns.
• C)They have a management structure designed to take advantage of the skills of the founder or founders.
• D)They ensure that the business is oriented toward the personal goals of the founders.

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Definitions:

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.

Mortgage Interest Rates

The percentage charged on a mortgage loan, influencing the affordability and demand for real estate.

Housing Starts

The number of new residential construction projects that have begun during any particular month.

Gross Investment

The cumulative expenditure on new capital assets prior to adjusting for depreciation.