Barry and Inge Recently Founded a Hot New Company That

question 64

Multiple Choice

Barry and Inge recently founded a hot new company that is growing rapidly. They need more money to finance their company's growth and have been approached by a venture capital firm. Barry and Inge should realize that the venture capital firm will only provide financing under which of the following circumstances?

• A) in exchange for a significant stake in their firm's ownership
• B) if they agree to avoid any risky investments
• C) if they agree to pledge specific company assets as collateral to back the loan
• D) if they have paid off all of the personal debt they incurred to start their company

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Definitions:

Top Executives

Senior-level managers or leaders in an organization responsible for making overarching decisions and setting strategic directions.

Threats

External or internal factors that pose a potential danger or negative impact on an individual or organization.

Utilitarianism

A teleological theory (also called consequentialism) that emphasizes consequences of actions, weighing the greatest good for the greatest number of people.

PR Practitioner

An alternative term for a professional engaged in managing and influencing public opinion and the relationship between an organization and its audience.