Which of the Following Statements Is Generally True of Venture

question 62

Multiple Choice

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

• A) VCs are always silent partners in the startup company that they finance
• B) VCs always have a majority of directors in the startup company
• C) VCs generally provide management advice and contacts in addition to capital
• D) All of the above statements are true of VCs

---

Definitions:

Option Agreement

A contract granting a party the right, but not the obligation, to buy, sell, or engage in a specific transaction at agreed terms within a specified time.

Property

Property refers to legally protected claims to resources, such as land, personal possessions, intellectual property, or other assets that are owned or controlled by a person or entity.

Unilateral Contract

A contract formed when one party performs what has been requested by the other party; there is a promise followed by an act, but not an exchange of promises.

Lost Dog

A canine that has gone missing from its owner's home or care.