Which One of the Following Statements Concerning Venture Capitalists Is

question 51

Multiple Choice

Which one of the following statements concerning venture capitalists is correct?

• A)Venture capitalists assume management responsibility for the firms they finance.
• B)Exit strategy is a key consideration when selecting a venture capitalist.
• C)Venture capitalists limit their services to providing money to start-up firms.
• D)Most venture capitalists are long-term investors in a firm.
• E)A venture capitalist normally invests in a new idea and finances that idea until the newly-formed firm can issue an IPO.

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Definitions:

Obedience

The act of following orders or directives from authority figures, often studied in psychology in terms of social influence and authority.

Direct Order

denotes an explicit command given by a superior or authority figure, requiring immediate compliance without question.

Behavior Change

A modification in human behavior that can result from practice, external influences, or internal efforts.

Foot-In-The-Door Effect

A psychological phenomenon where agreeing to a small request increases the likelihood of agreeing to a larger request later.