Which One of the Following Statements Concerning Venture Capital Is

question 5

Multiple Choice

Which one of the following statements concerning venture capital is correct?

• A)Venture capital is frequently provided in stages with each stage financed by a different venture capitalist.
• B)Most venture capitalists are passive investors.
• C)The founders of a firm generally realize substantial payoffs as soon as the firm receives venture financing.
• D)Venture capitalists generally compete with banks to find projects to finance.
• E)Well established firms tend to absorb most of the available venture capital.

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Definitions:

Cost Variance

The difference between the actual cost incurred for a particular activity or production and its standard or budgeted cost.