Naveen wants to start an amusement park in a remote area of Andhra Pradesh. This is a highly potential and high risk business plan that has not been tried by anybody so far. For this, he requires professionally qualified persons. Naveen knows that the business has high risk and may not attract investments from public. He approached J.H. Ltd. that provides equity to small and medium growth-oriented businesses in return for minority shareholding.
Identify the type of capital being provided by J.H. Ltd.
Identify the type of capital being provided by J.H. Ltd.
Answer & explanation
Correct answer: option 2
venture capital is an equity based investment in a growth-oriented small to medium business to enable the investors to accomplish objectives, in return for minority shareholding in the business or the irrevocable right to acquire.