Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Opportunity

Question:

Venture capitalist look for an exit from the business in the time frame of typically 3-7 years. Identify the way venture capitalist (VC) exit within the time frame from the business where they are investing?

Options:

VC's have a continuous involvement in the business so they do not exit.

VC's disinvest the holdings either to the promoters or in the market

VC's invest in the early stage and exit in the pre-public stage by disinvesting their holdings to the promoters

VC's exit after selling the shares in the market

Correct Answer:

VC's disinvest the holdings either to the promoters or in the market

Explanation:

The correct answer is option (2) - VC's disinvest the holdings either to the promoters or in the market