Which of the Following Is NOT a Reason Why an Investor

question 84

Multiple Choice

Which of the following is NOT a reason why an investor would choose to invest in new and growing firms as a limited partner in a venture capital firm rather than making those investments directly by themselves?

• A) Venture capital firms use their control of the companies they invest in to protect those investments.
• B) The investments of venture capital firm are more diversified than the investments of a single individual.
• C) A venture capital firm generally has a wide range of expertise among its general partners.
• D) The investor will have a direct say in how the companies that the venture capital firm funds will be run.

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Definitions:

Market Positioning

Involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

Marketing Mix Variables

The controllable factors that a company uses to influence consumers' purchase decisions, traditionally known as the 4Ps: Product, Price, Place, and Promotion.

Target Customers

Refers to a specific group of consumers identified as the recipient of a marketing message or campaign due to their potential interest or need for a product or service.

SWOT Analysis

A strategic planning technique used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.