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.