Asked by Sarah Elizabeth on Jun 29, 2024
Verified
Venture capital is ________.
A) frequently used to expand the businesses of well-established companies
B) supplied by venture capital funds and individuals to start-up companies
C) illegal under current U.S. laws
D) most frequently issued with the help of investment bankers
Venture Capital
Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
Start-up Companies
Newly established businesses typically characterized by high growth potential and innovative business models or products.
- Gain knowledge about the role and activities of financial intermediaries.
- Separate real assets from their financial counterparts, highlighting the evaluation and control aspects.
Verified Answer
JA
Johnny AppleseedJul 01, 2024
Final Answer :
B
Explanation :
Venture capital is typically provided by venture capital funds and individuals to start-up companies in exchange for equity in the company. It is not typically used to expand well-established companies, nor is it illegal under current U.S. laws. While investment bankers may sometimes be involved in the process, they are not the primary source of venture capital funding.
Learning Objectives
- Gain knowledge about the role and activities of financial intermediaries.
- Separate real assets from their financial counterparts, highlighting the evaluation and control aspects.