Which of the following is not true of venture capitalists?
A)They share in any profits that may result.
B)They incur risk.
C)They may experience losses.
D)They have the same financial liability as corporate stockholders.

Question

Quizplus · Accepted Answer

Venture capitalists do not have the same financial liability as corporate stockholders. Venture capitalists invest in a company by giving it funding in exchange for an ownership stake or equity. They take on the risk of losing their investment if the company fails, but their financial liability is limited to the amount of their investment. In contrast, corporate stockholders are liable for the company's debts and obligations to the extent of their shareholdings.

Which of the Following Is Not True of Venture Capitalists