According to Chapter 1, a Sentiment That Venture Capitalists Often

question 39

Multiple Choice

According to Chapter 1, a sentiment that venture capitalists often express is that ________.

• A) the strength of the entrepreneur and the strength of the business idea are of equal importance
• B) they would never fund a strong entrepreneur with a weak business idea
• C) they would rather fund a strong entrepreneur with a mediocre business idea than fund a strong business idea with a mediocre entrepreneur
• D) a new venture's marketing plan is more important than either the strength of the entrepreneur or the strength of the business idea
• E) they would rather fund a strong business idea with a mediocre entrepreneur than fund a strong entrepreneur with a mediocre business idea

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Definitions:

Unit Selling Price

Unit Selling Price is the price at which a single unit of a product or service is sold, not accounting for any discounts or promotions.

Unit Variable Costs

Unit Variable Costs refer to the expenses that vary directly with the production volume, including materials and labor directly involved in manufacturing.

Variable Cost

Expenses that fluctuate in direct correlation with the volume of production or business operations.

Contribution Margin Ratio

A financial metric that represents the portion of sales revenue that is not consumed by variable costs and can contribute to covering fixed costs.