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.

---

Definitions:

Service Charge

A fee charged to customers for a specific service provided, often seen in banking, hospitality, and service industries.

Factor

A factor refers to an element or condition that contributes to a result; in finance, it could also mean a firm that buys receivables from businesses.

Selling Expense

Costs related to the selling of products or services, including advertising, sales staff salaries, and commissions.

Interest Expense

The cost associated with an organization's debt over a given period of time.