Although There Is No Limit on the Amount of Stock

question 136

Multiple Choice

Although there is no limit on the amount of stock it can buy,a typical venture capital firm will purchase ________ percent of the ownership in a small firm.

• A)10-20
• B)20-40
• C)50-60
• D)80-90

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Definitions:

Opportunity Costs

The cost of foregoing the next best alternative when making a decision.

Cash Inflows

This term refers to the money coming into a business from its operational, financing, and investing activities.

Assets

Resources owned or controlled by a business, entity, or individual, with future economic value that can be measured and expressed in financial terms.

Externalities

Effects a project has on other parts of the firm or on the environment.