Asked by Humberto Marrero on Feb 18, 2024



If an entrepreneur receives $275,000 from venture capitalists in exchange for stock,what do the investors receive in return?

A) royalties from future sales
B) equity in the business
C) access to the first round of product
D) guaranteed board appointments


A share of the income of a business paid by a franchisee to the franchisor.

  • Knowledge of the role of venture capitalists in entrepreneurship
  • Awareness of the exchange of stock for investment
  • Understanding the concept of venture capital funding

Verified Answer

Paige Kaher

Feb 18, 2024

Final Answer :
Explanation :
Venture capitalists invest in startups in exchange for equity in the business, meaning they receive a share of ownership in the company. In this case, the investors would receive stock in the entrepreneur's business worth $275,000. They would then hope to see a return on their investment as the company grows and eventually goes public or is acquired. Options A, C, and D are not typically part of a venture capitalist's investment agreement.