According to the Chapter, What Portion of All Firms Receives

question 26

Multiple Choice

According to the chapter, what portion of all firms receives venture capital?

• A) Less than 0.01%
• B) Less than 0.1%
• C) Between 1% and 5%
• D) Between 5% and 10%
• E) More than 10%

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Definitions:

Compensating Balance

A minimum balance that a borrower must maintain in a bank account as a condition for getting a loan from that bank.

Cash Burn

The rate at which a company spends its cash reserves, especially in the context of startups or new ventures.

Monthly Cash Expenses

The total amount of money spent by a business within a month for operational activities, excluding non-cash expenses.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value due to changes in interest rates.