Which of the Following Is a Reason Why an Investor

question 41

Multiple Choice

Which of the following is 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 less diversified than the investments of a single individual.
• C)A venture capital firm generally has a narrow 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.
• E)The venture capital firm guarantees a higher return.

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Definitions:

Aerobic Power

The maximum rate at which an individual can consume oxygen during intense exercise, indicating cardiovascular fitness.

Cardiovascular And Muscular Systems

Refers to the combined functionalities of the heart, blood vessels, and muscular system in the body, highlighting their interdependence in maintaining health and facilitating movement.

Physiological Differences

Variations in the functioning of the body among individuals or groups, often studied in contexts such as gender, race, or health status.

Hunters And Heavy Laborers

Individuals who engage in hunting and physically demanding tasks as their primary forms of occupation or subsistence.