Tactics That Venture Capitalists Use to Reduce the Risk of Their

question 45

Multiple Choice

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

• A) funding the ventures in stages, requiring entrepreneurs to take charge of all important business decisions.
• 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 specialize.
• 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 specialize.
• D) None of the above

---

Definitions:

Ordering Costs

Expenses incurred in placing and receiving orders from suppliers, including costs related to ordering and receiving goods.

Inventory Value

The reported value of a company's goods or materials that have not yet been sold, calculated based on the cost of acquisition or manufacturing.

Cash Balances

Cash Balances are the amount of cash or cash equivalents that a company or an individual holds.

Transactions

The action of buying or selling in a business context, or the records of these actions.