A(n)________ Invests in the Equity of Existing Privately Held Firms

question 12

Multiple Choice

A(n) ________ invests in the equity of existing privately held firms.

• A)venture capital firm
• B)private debt firm
• C)vulture fund
• D)private equity firm

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Definitions:

Capital

Economic resource that is used to produce goods and services, including buildings, machinery, and equipment.

Financial Assets

Resources having economic value that are held by an individual or corporation, primarily including stocks, bonds, and cash equivalents.

Entrepreneur

A profit-seeking decision maker who starts with an idea, organizes an enterprise to bring that idea to life, and assumes the risk of the operation

Profit

Reward for entrepreneurial ability; sales revenue minus resource cost.