Examples of Contractual Covenants Used to Help Control Agency Problems

question 76

Multiple Choice

Examples of contractual covenants used to help control agency problems between venture capitalists (VC) and investors include:

• A) limiting the VCs ability to establish new funds without granting existing investors equal access.
• B) mandating that existing investors be included in any equity sale contracts the VC negotiates.
• C) restricting the VCs freedom to invest in foreign and in publicly traded securities.
• D) All of the above
• E) (a)and (c)only.

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Definitions:

Human Resources Management

A function in organizations designed to maximize employee performance in service of an employer's strategic objectives, focusing on policies and systems.

Selection

The process of collecting information about applicants and using that information to make hiring decisions.