Which of the Following Statements Is NOT True Regarding Venture

question 41

Multiple Choice

Which of the following statements is NOT true regarding venture capitalists?

• A) They can provide substantial capital for young companies.
• B) The firms offer limited partners a number of advantages over investing directly in start-ups themselves as angel investors.
• C) They use their control to protect their investments, so they may therefore perform a key nurturing and monitoring role for the firm.
• D) They might invest for strategic objectives in addition to the desire for investment returns.

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Definitions:

Wage

Compensation received by employees for their labor or services, often expressed in terms of hourly, daily, or annual earnings.

Marginal Product

The additional output that is produced as a result of using one more unit of a particular input, such as labor or capital, while keeping other inputs constant.

Wage

The compensation paid to an employee for their labor, usually expressed as an hourly, daily, or weekly rate.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.