Which of the Following Is a Similarity Between Venture Capital

question 17

Multiple Choice

Which of the following is a similarity between venture capital firms and angel investors?

• A)Both invest in start-up companies with high growth potential in exchange for a share of ownership.
• B)Both charge very high interest rates and structure loans to be repaid in months rather than years.
• C)Both require an entrepreneur to provide a minimum of twenty-five to thirty percent of the start-up costs.
• D)Both only finance large corporations that operate in universal and generic markets.

---

Definitions:

Selling Price

The amount charged to customers for a product or service, determining the revenue earned by a business.

Contribution Margin Ratio

A financial metric that measures the portion of revenue remaining after variable costs are subtracted, expressed as a percentage of sales.

Budgeted Sales Revenue

Projected income from sales activities over a specific period, as estimated during budgeting.

Break-Even Sales Revenue

The amount of revenue needed to cover all fixed and variable costs of a business.