Which of the Following Is Least Likely to Explain Why

question 108

Multiple Choice

Which of the following is least likely to explain why entrepreneurs contribute their personal funds to start-up projects? Their contribution:

• A)acts as a signal to venture capitalists.
• B)repays debt held by the venture capitalist.
• C)retains a portion of the firm's equity.
• D)provides incentive to expend efforts.

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Definitions:

Third-Party Endorsement

A recommendation or approval of a product, service, or individual by an independent, external entity, often used in marketing to build trust.

Special Endorsement

A signature or statement on a financial instrument, such as a check, specifying the conditions under which the instrument can be transferred or paid out.

Blank Endorsement

An endorsement on a financial instrument, such as a check, with only the signature of the endorser, making it payable to anyone holding the instrument.

Payee's Signature

The signature of the person entitled to receive payment on a check or document, signifying approval or receipt of money.