Asked by
Kaitlyn WIlliams
on Nov 07, 2024Verified
The financing provided for start-up, often high-risk, private business enterprises is called:
A) Venture capital.
B) Junk bonds.
C) Flotation costs.
D) Initial public offerings.
E) Financial futures.
Venture Capital
Financing provided by investors to startup companies and small businesses with perceived long-term growth potential.
Start-up Enterprises
New business ventures in their initial operational stages, often characterized by high uncertainty and risk, but with potential for significant growth and innovation.
Flotation Costs
The costs incurred by a company when issuing new securities, including underwriting fees, legal fees, and registration fees.
- Identify the function of venture capital in funding startup companies.
Verified Answer
TR
Learning Objectives
- Identify the function of venture capital in funding startup companies.