Which of the following statements is NOT true? Venture capitalists’ sole function is to provide financing for new firms. Modern venture capital firms tend to specialize in a specific line of business, such as hospitality, food manufacturing, or medical devices. Venture capitalists bear a substantial amount of risk when they fund a new business. A significant number of venture capital firms focus on high-technology investments.

Which of the following statements is NOT true? Venture capitalists’ sole function is to provide financing for new firms. Modern venture capital firms tend to specialize in a specific line of business, such as hospitality, food manufacturing, or medical devices. Venture capitalists bear a substantial amount of risk when they fund a new business. A significant number of venture capital firms focus on high-technology investments.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter13: Sustainability Reporting

Section: Chapter Questions

Problem 11MC: Which of the following statements is most often the case? A. Socially responsible businesses tend to...

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An investor provides an entrepreneurial firm with the capital that it needs to grow. over and above providing the capital, in what other ways can the investor add value to the firm? What are the possible downsides of having a venture capitalist as an investor in the business?
A venture capitalist invests primarily his/her own money in a company, seeking a substantial return. true or false?
Since venture capital only invest in startup business, very high-risk investments, explain how venture capital minimize their level of risk?
It can be argued that the decision to accept venture capital is one of the most critical decisions an entrepreneur must make. Explain why.
Why investors are willing to invest in high-tech firms instead of conventional financial sources?
Would a profitable small business with only moderate growth potential be a good candidate for venture capitalist funding? Why or why not?
Venture capital (VC) firms are pools of private capital that typically invest in small, fast-growing companies, which usually can’t raise funds through other means. In exchange for this financing, the VCs receive a share of the company’s equity, and the founders of the firm typically stay on and continue to manage the company. Describe the nature of the incentive conflict between VCs and the managers, identifying the principal and the agent. VC investments have two typical components: (1) managers maintain some ownership in the company and often earn additional equity if the company performs well; (2) VCs demand seats on the company’s board. Discuss how these two components help address the incentive conflict.
Which of the following statements is most often the case? A. Socially responsible businesses tend to post higher profits than those not focused on social responsibility. B. Companies that are not socially responsible will have better profits, but have a moral obligation to society. C. Socially responsible investing gives poorer returns than non-socially responsible Investing. D. Investors are more short termed focus and so socially responsible investing should not be a factor in their investment portfolio.
Provide detailed explanation to the following questions 1. Explain the concept of venture capital funding with relevant examples 2. Using relevant illustrations, compare and contrast the workforce implications of the Baby Boomers generation with those of the Generation X. 3. Compare and contrast strategic alliances with joint ventures. Support your answer with relevant examples. 4. How is a business plan different from an executive summary?
Venture-capital funding may sometimes be used to fund high-growth small companies. Venture capitalists usually invests in companies in return for which one of the following? Select one: a. Buy-back options b. Preference shares c. Tax breaks d. Interest on capital loaned
Which of the following sources of entrepreneurial financing are available to ventures that have already started to conduct business and generate sales? bank financing venture capital public financing all of these
Which one of the following is true regarding venture capitalists? I. They are large shareholders of the issuing firms and exit their investment in initial public offerings. II. They are large investors who want to buy the shares in initial public offerings. III. They tend to invest in young risky ventures. IV. They like underpricing in initial public offerings. A. I and II B. I and IV C. I, III, and IV D. I, II, III, and IV Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.