When Evaluating the Prospects of a New Venture, Venture Capital

question 1

Multiple Choice

When evaluating the prospects of a new venture, venture capital firms consider which of the following?

• A)characteristics of the proposal, characteristics of the entrepreneur/team, and nature of the proposed industry
• B)characteristics of the proposal and the entrepreneur/team
• C)characteristics of the entrepreneur/team and nature of the proposed industry
• D)characteristics of the proposal and nature of the proposed industry

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Definitions:

Lagging Indicator

A metric that shows the performance of an economy, industry, or company after the fact and confirms trends rather than predicting them.

Cognitive Bias

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Balanced Scorecard

A strategic planning and management system that organizations use to communicate what they aim to accomplish, align day-to-day work with strategy, prioritize projects, and measure and monitor progress.

Dow Jones Sustainability Index

A global index that tracks the performance of the world's leading companies in terms of economic, environmental, and social criteria.