Asked by Victoria Archie on May 05, 2024
Verified
Jermaine raises money from wealthy individuals and institutional investors,and invests them in a variety of promising new companies.In exchange,he will become part owner of those businesses.Jermaine is a(n)
A) angel investor.
B) underwriter.
C) entrepreneur.
D) venture capitalist.
Venture Capitalist
An investor who provides capital to startup companies and small businesses with perceived long-term growth potential in exchange for equity or an ownership stake.
Institutional Investors
Institutional investors are organizations such as pension funds, insurance companies, and mutual funds that invest large sums of money in securities and assets.
Angel Investor
A wealthy individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.
- Pinpoint the manifold sources of finance for firms and the outcomes associated with each.
Verified Answer
MC
Matthew CrandleyMay 09, 2024
Final Answer :
D
Explanation :
Jermaine is acting as a venture capitalist because he raises money to invest in new companies in exchange for ownership, which is the core activity of venture capitalists. They provide capital to startups or small businesses with long-term growth potential.
Learning Objectives
- Pinpoint the manifold sources of finance for firms and the outcomes associated with each.