Which of the Following Statements Is Generally True of Venture

question 65

Multiple Choice

Which of the following statements is generally true of venture capital (VC) firms?

• A)VCs are always silent partners in the start-up company that they finance.
• B)VCs always have a majority of directors in the start-up company.
• C)VCs generally provide management advice and contacts in addition to capital.
• D)VCs are combinations of publicly traded companies.

---

Definitions:

Overtime Salaries

Compensation paid to employees for hours worked beyond their normal working hours, usually at a higher rate than the regular hourly wage.

Expenses

Economic costs a business incurs through its operations to earn revenue, representing the outflow of assets or incurring of liabilities.

February

The second month of the year in the Gregorian calendar, often associated with being the shortest month.

Accrual Accounting

A rephrased definition of Accrual Basis of Accounting; it involves recording transactions when they are earned or incurred, providing a more accurate financial picture by matching revenues with expenses.