Which of the Following Are True Statements

question 7

Multiple Choice

Which of the following are true statements?
I.Venture capitalists tend to be long-term investors in a firm.
II.Venture capital is relatively easy to obtain for most new firms.
III.Venture capitalists generally have an exit strategy.
IV.Venture capitalists tend to specialise in one type of financing for a select type of firm.

• A)III and IV only
• B)I and II only
• C)II and IV only
• D)I and IV only
• E)I and III only

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Definitions:

Average Total Cost

represents the per-unit total cost of production, calculated by dividing the total cost by the quantity of output produced.

Variable Cost

Costs that change in proportion to the level of production or sales volume.

Total Cost

The sum of all expenses, both fixed and variable, involved in producing a good or providing a service.

Fixed Cost

Costs that do not change in total regardless of the level of output or activity in the short term.