In exchange for a share of ZYX's profits if it succeeds, Firm ABC provides development funds to newly formed ZYX, which is developing an innovative product. ABC funds are called ____________, while ZYX is known as a ____________.
A)venture capital; start-up
B)retained earnings; entrepreneurial firm
C)mutual funds; start-up
D)transfer payments; entrepreneurial firm

Question

Quizplus · Accepted Answer

Venture capital is a type of private equity and financing that investors provide to startups and small businesses that are believed to have long-term growth potential. ZYX, in this context, is a start-up, which refers to a company in the first stages of operations.

In Exchange for a Share of ZYX's Profits If It