Once the Venture Capital Firm Has Received Exit Proceeds from a Venture

question 9

True/False

Once the venture capital firm has received exit proceeds from a venture in the form of cash or securities, some method of returning the proceeds (less the carried interest)must be determined.

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Definitions:

Principal

In a legal context, a principal can also refer to the person who has authorized another (an agent) to act on their behalf.

Apparent Authority

A situation where a person appears to have the authority to act on behalf of another, even if such authority has not been explicitly given.

Agent

Someone authorized to act on behalf of another person or entity, often in business transactions or legal matters, with certain duties and powers.

Ratification

Ratification is the act of officially approving an agreement or contract, making it valid, or the process of confirming and accepting unauthorized actions by an agent on behalf of a principal.