Venture Capital Firms Look to Invest Their Funds in Firms

question 177

Multiple Choice

Venture capital firms look to invest their funds in firms that

• A) operate in established, mature industries.
• B) present financial statements indicating stronger than average cash flows.
• C) are new with great profit potential.
• D) require extra funding to avoid financial difficulties.

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Definitions:

Resources-Based View

A strategic framework that emphasizes the importance of internal capabilities and resources in gaining competitive advantage.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, often through unique resources, capabilities, or positioning.

Transactional Activity

Transactional Activity refers to the routine, day-to-day operations and transactions within an organization, such as payroll processing and record-keeping.

Human Capital

The value of an individual’s competencies and capabilities, which is considered an asset to an organization’s performance and efficiency.