Venture Capital

question 80

Multiple Choice

Venture capital:

• A)is another name for the principal which a business borrows from a bank
• B)includes all the money the owner of the business invests in his or her new enterprise
• C)is borrowed money invested in start-up businesses and provided by the Small Business Administration
• D)gives the investor no voice in how the company in which he or she has invested will operate
• E)is financing obtained from investment firms that specialize in financing small, high-growth companies

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Definitions:

Percentage

A ratio or fraction out of 100 that is used to express how large one quantity is relative to another quantity.

Marginal Rate

The rate of increase in a variable (e.g., tax rate, substitution, technical substitution) as another variable (e.g., income, quantity of another good) increases incrementally.

Increase

An upward movement in quantity, value, or some other measure, indicating growth or accumulation.

Income Taxed

A government levy on individual or corporate income.