When Evaluating the Prospects of a New Venture, Venture Capital

question 55

Multiple Choice

When evaluating the prospects of a new venture, venture capital firms consider the characteristics of the entrepreneur and its team. Which of the following is not part of the review of the entrepreneur/team?

• A) its background and experience
• B) its managerial capabilities
• C) management's stake in the firm
• D) the VC firms' ability to cash out
• E) the capability to sustain an effort

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Definitions:

Institutionalized Socialization

The process by which organizations systematically train and orient new employees to internal culture, practices, and values.

Developmental Network

A group of individuals who provide support, advice, and feedback for personal and professional development.

Mentoring

A relationship in which a more experienced or knowledgeable person helps to guide a less experienced or less knowledgeable person.

Strong Cultures

Organizational cultures with deeply ingrained values, beliefs, and behaviors shared by members, influencing cohesion and performance.