When Seeking Financial Backing from a Venture Capitalist, a Small

question 262

Multiple Choice

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

• A) charge an interest rate that is much higher than any other lender.
• B) not be interested in the management of the business.
• C) expect an ownership stake in the company in exchange for financial backing.
• D) demand that the money be repaid within 90 days or less.

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Definitions:

Analyze Data

The process of inspecting, cleaning, and modeling data with the goal of discovering useful information, informing conclusions, and supporting decision-making.

Nonparametric Statistics

Statistical methods that do not rely on data belonging to any specific distribution.

Normally Distributed

Referring to a distribution that follows a normal curve, characterized by its bell shape and defined by its mean and standard deviation.

Ordinal Data

A type of categorical data in which the order or ranking of the values is significant, but the difference between those values is not necessarily consistent or defined.