Having developed a prototype of his new lawnmower,John is attempting to acquire sufficient capital to market his product.In exchange for a majority ownership of his company,John receives two million dollars from an investment group in Brampton to provide the income to launch this endeavour.The investor's group is an example of a(n)________
A)venture capital company
B)mutual company
C)labour supported investment fund
D)income trust
E)private equity firm

Question

Quizplus · Accepted Answer

Venture capital companies provide funding to early-stage companies in exchange for ownership or equity in the company. They often invest in innovative or high-growth potential businesses like John's lawnmower prototype. The investment group in Brampton fits the description of a venture capital company.

Having Developed a Prototype of His New Lawnmower,John Is Attempting