CUET Preparation Today
| Secret eye pvt ltd. was into manufacturing security cameras for household and commercial buildings. Their Research and development team came up with a new idea of manufacturing drones as security cameras which will give a 360-degree view of the entire building. They needed huge finance for the same. The company MD Prasoon heard of this group of venture capitalists who are ready to invest in new ideas. Prasoon is a bit skeptical as most venture capitalists will require significant detail with respect to a company's business plan. How can Prasoon protect his business? |
By entering into a non-disclosure agreement between VC and company. By filing Intellectual property rights Both a and b Neither a nor b |
| Both a and b |
| Unlike public companies, information regarding an entrepreneur's business is typically confidential and proprietary. As part of the due diligence process, most venture capitalists will require significant detail with respect to a company's business plan. Entrepreneurs must remain vigilant about sharing information with venture capitalists that are investors in their competitors. Most venture capitalists treat information confidentially, but as a matter of business practice, they do not typically enter into non–disclosure agreements because of the potential liability issues those agreements entail. Entrepreneurs are typically well-advised to protect truly proprietary intellectual property. |
