A venture capital firm does not a appoint its own people as directors in the companies it finances b invest in risky startup c address the principal agent problem d enable other investors yo free ride on its verification activities

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 1.8CE
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A venture capital firm does not
a appoint its own people as directors in the
companies it finances
b invest in risky startup
c address the principal agent problem
d enable other investors yo free ride on its
verification activities
Transcribed Image Text:A venture capital firm does not a appoint its own people as directors in the companies it finances b invest in risky startup c address the principal agent problem d enable other investors yo free ride on its verification activities
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