Examples of Contractual Covenants Used to Help Control Agency Problems

question 82

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:

Societal Marketing

A marketing approach that considers not only the needs and wants of consumers but also the welfare of society and long-term environmental sustainability.

Marketing Practice

The implementation and application of marketing strategies and techniques by businesses to attract and retain customers.

Nonprofit Organizations

Organizations that operate for charitable, educational, scientific, or public safety purposes to benefit the public or a particular group of people, without intending to make a profit for its owners or members.

Retailers

Businesses or individuals that sell goods directly to consumers for personal or household use, acting as the final stage in the distribution chain.