Funds lent to start-up firms in return for shares of the profit if the firms succeed are called
A) retained earnings.
B) time deposits.
C) venture capital.
D) transfer payments.

Question

Quizplus · Accepted Answer

Funds lent to start-up firms in return for shares of the profit if the firms succeed are called venture capital. Retained earnings refer to profits that a company has kept instead of distributing as dividends. Time deposits are savings accounts where money is deposited for a fixed period, usually with a higher interest rate. Transfer payments are government payments made to individuals or other governments without expectation of any goods or services in return.

Funds Lent to Start-Up Firms in Return for Shares of the Profit