CUET Preparation Today
| Assertion: As part of the due diligence process, most venture capitalists will require significant detail with respect to a company's business plan. Reasoning: Entrepreneurs wanting to raise Venture Capital must remain vigilant about sharing information with venture capitalists that are investors in their competitors. |
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct. |
| Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A. |
| 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. |
