Because Investors in a New Business Venture Cannot Sell the Investment

question 49

Multiple Choice

Because investors in a new business venture cannot sell the investment easily,they might demand some form of extra compensation. This is known as

• A) an illiquidity premium.
• B) a break even charge.
• C) adverse effect.
• D) capital method.
• E) terminal value.

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Definitions:

Psychological Changes

Alterations or developments in emotional, cognitive, or behavioral characteristics over time due to various factors or life experiences.

Life Crises

Significant life events that require a substantial amount of adjustment and can lead to personal growth or distress.

Biological Perspective

A way of looking at psychological issues by examining the biological bases of behavior, including genetics, brain structures, and biochemical processes.

Extinguish

In psychological terms, to diminish or eliminate a conditioned response, often through repeated exposure to the conditioned stimulus without the unconditioned stimulus.