A Venture Capitalist Usually Will Invest in a Small Business

question 85

Multiple Choice

A venture capitalist usually will invest in a small business by one of several methods. Which of the following is not one of those methods.

• A) Taking a direct ownership position in the form of common stock
• B) Purchasing the business
• C) Accepting the firm's bond plus an "equity kicker"
• D) Taking the right to purchase a certain portion of the firm

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Definitions:

Court Structure

The hierarchical arrangement of courts within a legal system, ranging from lower courts to higher courts, each with specific jurisdictions and responsibilities.

Province

A principal administrative division of certain countries, notably Canada, which is distinguished by geographical, cultural, or political criteria.

Court System

The organizational structure of courts that interpret and apply the law in legal cases, comprising various levels from local to supreme courts.

Enforce

To compel obedience to a law, rule, or obligation through the imposition of penalties or legal sanctions.