Tracy Lefteroff is the global managing partner for PricewaterhouseCoopers. She said that her company is eager to invest in newly created biotech companies because Canada has an aging population that will need new medications and treatments. Which of the following kinds of equity capital would Lefteroff be likely to provide?
A) dividends
B) mortgage loans
C) retained earnings
D) venture capital

Question

Quizplus · Accepted Answer

Tracy Lefteroff's interest in investing in newly created biotech companies indicates that she is likely to provide venture capital, which is a type of equity investment made in early-stage, high-potential companies that need funding to grow their business. Venture capital is typically provided by investors, such as PricewaterhouseCoopers, who are willing to take on higher risks in exchange for potentially higher returns on their investment. Dividends, mortgage loans, and retained earnings are not typically associated with venture capital investments.

Tracy Lefteroff Is the Global Managing Partner for PricewaterhouseCoopers