Which One of the Following Statements Concerning Venture Capital Financing

question 72

Multiple Choice

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

• A)Venture capitalists desire shares of common stock but avoid preferred stock.
• B)Venture capital is relatively easy to obtain.
• C)Venture capitalists rarely assume active roles in the management of the financed firm.
• D)Venture capitalists often require at least a forty percent equity position as a condition of financing.
• E)Venture capital is relatively inexpensive in today's competitive markets.

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Definitions:

Companionship

The feeling of fellowship or friendship that arises from being with others, often contributing to emotional and social well-being.

Need For Power

An individual's desire to control or influence others, a concept in psychology that relates to motivation.

McClelland

A reference to psychologist David McClelland, known for his work on motivation theory, especially the theory of needs which includes achievement, affiliation, and power.

Two-Factor Theory

A psychological theory that proposes motivation and job satisfaction are influenced by two factors: hygiene factors and motivators.