Which of the Following Statements Is True Concerning the Term

question 80

Multiple Choice

Which of the following statements is true concerning the term "venture capital?"

• A) In the United States the term refers to all professionally managed, equity-based investments in private, entrepreneurial growth companies while in Europe the term refers to early-and expansion-stage financing.
• B) In the United States the term refers to all professionally managed, equity-based investments in private, entrepreneurial growth companies while in Europe the term refers to later-stage financing.
• C) In Europe the term refers to all professionally managed, equity-based investments in private, entrepreneurial growth companies while in the United States the term refers to early-and expansion-stage financing.
• D) The terms refer to the same thing in both Europe and the United States.

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Definitions:

Collection Float

The time gap between when a check is deposited into a bank account and when the funds become available.

Opportunity Cost

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Net Float

The difference between checks written against and deposited in an account and those that have been cleared and charged against the account.

Short-term Investments

Financial assets that are expected to be converted into cash or sold within a short timeframe, usually one year or less.