As venture firms attract money from investors, it is placed in a fund. Important issues that must be put in place with the establishment of the fund include all of the following except :

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The establishment of a fund does not involve assigning a management team to each borrower. The other options listed are important issues that must be put in place. Determining the general partners involves selecting who will oversee the fund and make important investment decisions. Establishing a fee structure relates to how the venture firm will be compensated for facilitating investments. Finally, establishing a profit sharing arrangement determines how profits will be distributed between the investors and the venture firm.

As Venture Firms Attract Money from Investors, It Is Placed