One of the Primary Reasons for Disbursing Venture Capital Funds

question 34

Multiple Choice

One of the primary reasons for disbursing venture capital funds in installments is to:

• A) avoid tax liability.
• B) identify and cut losses early.
• C) increase the importance of the venture capitalist.
• D) take advantage of the time value of money.

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Definitions:

Cash Payment

A transaction where an immediate payment of cash is made in exchange for goods or services.

Voucher

A written authorization form containing data about a transaction along with proper authorizations for payment, account distributions, and so forth.

Purchase Requisition

A form used within a business by the requesting department asking the purchasing department of the business to buy specific goods.

Cash Payment

Cash Payment involves the transfer of cash from one party to another as a form of settlement of a transaction or an obligation.