Which of the Following Is True About Gaining Access to Venture

question 130

Multiple Choice

Which of the following is true about gaining access to venture capital?

• A) It is relatively easy to gain access to the venture capital market provided you have a good product.
• B) Venture capitalists often choose their investments by reviewing unsolicited proposals.
• C) The venture capital market is very much an "introduction" market; that is, you need personal contacts to gain access.
• D) Venture capitalists rarely rely on informal networks of lawyers, accountants, and bankers to help identify potential investments.
• E) If you wish to gain access to venture capital financing, it would likely do you little good to know someone who obtained venture capital themselves.

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Definitions:

Rental Price

The cost paid to rent a property or equipment for a specified period of time.

Market Equilibrium

A market scenario in which the equilibrium between demand and supply results in stable prices.

Incentive

Anything that offers rewards to people to change their behavior.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a certain price.