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Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:

Assertion : Second-round financing refers to the capital required by an entrepreneur for conducting research at pre commercialization stage.
Reasoning : During second round financing, the entrepreneur needs assistance from the Venture Capitalist for expansion, modernization, diversification so that the economies of scale and stability could be attained.

Options:

Both, A and R, are true and R is the correct explanation of A

Both, A and R, are true but R is not the correct explanation of A

A is true but R is false

A is false but R is true

Correct Answer:

A is false but R is true

Explanation:

Seed capital finance, refers to the capital required by an entrepreneur for conducting research at pre commercialization stage. Hence, Assertion is incorrect.

CUET Questions