Asked by
Harrison Wessell
on Nov 06, 2024
Verified
Which of the following is a drawback of obtaining money from venture capitalists to start a small business?
A) They are not interested in managing or controlling the business.
B) They require the small-business owner to share the profits of the business with them.
C) They require that the small business owner mortgage his or her personal property to obtain funds.
D) They prefer to sell the stock at a low price after the business has grown successful.
E) They are not interested in claiming ownership of the business.
Venture Capitalists
Persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock.
- Become aware of the distinctions between debt and equity financing and their ramifications for entrepreneurs of small enterprises.
- Understand the intricacies of venture capital funding, including its advantages and disadvantages for small business ownership.
Verified Answer
WR
Learning Objectives
- Become aware of the distinctions between debt and equity financing and their ramifications for entrepreneurs of small enterprises.
- Understand the intricacies of venture capital funding, including its advantages and disadvantages for small business ownership.
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