When Seeking Financial Backing from a Venture Capitalist, a Small

question 262

Multiple Choice

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

• A) charge an interest rate that is much higher than any other lender.
• B) not be interested in the management of the business.
• C) expect an ownership stake in the company in exchange for financial backing.
• D) demand that the money be repaid within 90 days or less.

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Definitions:

Publicists

Professionals specializing in generating and managing publicity for individuals, organizations, or products, often through media outreach and events.

Stereotype

A fixed or oversimplified image or idea of a particular type of person or thing.

Educating Clients

The process by which service providers inform and teach their clients about relevant issues, strategies, or the benefits of certain practices.

Public Information Officer

An individual responsible for handling communications and disseminating information on behalf of a public organization to the media and public.