In Exchange for a Share of ZYX's Profits If It

question 26

Multiple Choice

In exchange for a share of ZYX's profits if it succeeds, Firm ABC provides development funds to newly formed ZYX, which is developing an innovative product. ABC funds are called , while ZYX is known as a .

• A) venture capital; start-up
• B) retained earnings; entrepreneurial firm
• C) mutual funds; start-up
• D) transfer payments; entrepreneurial firm

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