After Meeting Together, the Members of the Venture Capital Group

question 58

Multiple Choice

After meeting together, the members of the venture capital group decided not to fund any more projects for the year.Before the meeting, some members had been cautiously in favour of funding.What happened?

• A)Groupthink
• B)Diffusion of responsibility
• C)Risky shift
• D)Conservative shift
• E)Hindsight

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Definitions:

Convertible Bond

A convertible bond is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company, usually at certain times during its life.

Common Stock

A type of equity security that represents ownership in a corporation and entitles the holder to vote at shareholder meetings and receive dividends.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of an asset.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.