When Evaluating the Prospects of a New Venture, Venture Capital

question 45

Multiple Choice

When evaluating the prospects of a new venture, venture capital firms consider the characteristics of the entrepreneur and its team. Which of the following is not part of the review of the entrepreneur/team?

• A)its background and experience
• B)its managerial capabilities
• C)management's stake in the firm
• D)the VC firms' ability to cash out

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Definitions:

Sense Organs

Specialized structures in the body that respond to external stimuli and send signals to the brain, including eyes, ears, nose, tongue, and skin.

Spinal Cord

A major part of the central nervous system, the spinal cord is a long, thin, tubular structure made up of nervous tissue that extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column.

Hallucinogen

Hallucinogen is a substance that induces alterations in perception, thinking, and emotions, leading to experiences that differ from objective reality.

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug that alters perception and mood.