Tactics That Venture Capitalists Use to Reduce the Risk of Their

question 38

Multiple Choice

Tactics that venture capitalists use to reduce the risk of their investment include:

• A) funding the ventures in stages, requiring entrepreneurs to make no personal investments, syndicating investments, and maintaining in-depth knowledge about the industry in which they specialise.
• B) funding the ventures completely in the beginning, requiring entrepreneurs to make personal investments, syndicating investments, and maintaining in-depth knowledge about the industry in which they specialise.
• C) funding the ventures in stages, requiring entrepreneurs to make personal investments, syndicating investments, and maintaining in-depth knowledge about the industry in which they specialise.
• D) None of the above.

---

Definitions:

Normal Population

A population in which the data follows a normal distribution, characterized by a bell-shaped curve.

Binomial Population

A population in which each member has only two possible outcomes or states, typically referred to as a success or failure.

Goodness-Of-Fit Test

A statistical method employed to assess the alignment between observed data and its predicted distribution.

Degrees Of Freedom

The number of independent values or quantities which can vary in an analysis without breaking any constraints.