Practicing Success
Practicing Success
CUET Preparation Today
| Which of the following statement (s) is/are correct in the context of Venture Capital? |
Obtaining venture capital is substantially different from raising debt or a loan from a lender. Venture capitalists are typically very selective in deciding what to invest in and as a rule of thumb A venture capital is invested in exchange for an equity stake in the business. All of the above |
| All of the above |
| Obtaining venture capital is substantially different from raising debt or a loan from a lender. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of the success or failure of a business. But, a venture capital is invested in exchange for an equity stake in the business. Because of the strict requirements venture capitalists have for potential investments, entrepreneurs should seek funding from this source after a careful evaluation. Venture capitalists are typically very selective in deciding what to invest in and as a rule of thumb. |
