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.

---

Definitions:

Continual Reinforcement

A reinforcement schedule in which a behavior is reinforced every time it occurs, leading to rapid learning.

Flavor Aversions

The learned avoidance of a particular food or taste after a negative experience, associating it with illness or discomfort.

Organisms

Living beings that carry out essential life processes such as growth, reproduction, and metabolism.

Stimulus

An external or internal event or occurrence that elicits a response from a cognitive system or organism.