When Evaluating the Prospects of a New Venture, Venture Capital

question 4

Multiple Choice

When evaluating the prospects of a new venture, venture capital firms consider which of the following?

• A) characteristics of the proposal
• B) characteristics of the entrepreneur/team
• C) nature of the proposed industry
• D) both b and c
• E) all of the above

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Definitions:

Consumer Surplus

The incongruity between the price consumers are willing to offer for a good or service versus the final cost.

Increase Supply

An upward shift in the supply curve, indicating more of a good or service is available for sale at any given price, usually the result of factors like improved technology or decreased production costs.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.

Soybeans

Edible legumes native to East Asia, widely grown for their numerous uses, which include producing oil, as a source of protein, and in many food products.