According to Chapter 1, a Sentiment That Venture Capitalists Often

question 62

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 a strong entrepreneur with a mediocre business idea

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Definitions:

Purchase Discounts

A reduction in the price paid for goods or services, often granted by the seller as an incentive for early payment.

Freight-In

Freight-in concerns the shipping costs of receiving goods to be sold or used in production, added to the cost of purchased inventory.

Sales Returns and Allowances

Concessions made by the seller, including refunds and reductions in the original selling price for returned goods or deficiencies.

Operating Expenses

Expenses incurred from a company's primary business activities, excluding cost of goods sold, such as rent, salaries, and utility bills.