Which of the Following Is Least Likely to Explain Why

question 108

Multiple Choice

Which of the following is least likely to explain why entrepreneurs contribute their personal funds to start-up projects? Their contribution:

• A)acts as a signal to venture capitalists.
• B)repays debt held by the venture capitalist.
• C)retains a portion of the firm's equity.
• D)provides incentive to expend efforts.

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Definitions:

Attractiveness

The qualities or features that are appealing or pleasing to others, typically in a physical or aesthetic sense.

Social Exchange Theory

A sociological and psychological theory that suggests human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.

Prospective Partners

Individuals considered or evaluated for potential romantic or business partnerships.

Relationship

A connection, association, or involvement between two or more parties, either individuals or entities.