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:

Chronic Hypoxemia

A long-term medical condition characterized by consistently low levels of oxygen in the blood, which can lead to complications if untreated.

Chronic Obstructive

A term likely referring to Chronic Obstructive Pulmonary Disease (COPD), a progressive lung disease characterized by breathing difficulty.

Peripheral Edema

Swelling in the limbs due to the accumulation of fluid, often related to heart failure, liver disease, or kidney problems.

Cardiopulmonary Resuscitation

An emergency life-saving procedure performed when the heart stops beating, involving chest compressions combined with artificial ventilation.