When Venture Capitalists Take an Active Role in the Management

question 62

True/False

When venture capitalists take an active role in the management of a company they finance, they are trying to alleviate the moral hazard problem.

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Definitions:

Social Differentiation

The process by which societies or groups within them are separated into different categories or classes based on various factors like wealth, occupation, and social status.

Common Values

refer to shared beliefs or standards within a group or organization that influence behavior and decision-making processes.

Personal Sacrifices

Acts of giving up one's own interests, comfort, or possessions for the sake of others or for a larger purpose.

Communication Norm

Established guidelines or behaviors regarded as acceptable and normal within a communication context, group, or culture.