When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will
A) charge an interest rate that is much higher than any other lender.
B) not be interested in the management of the business.
C) expect an ownership stake in the company in exchange for financial backing.
D) demand that the money be repaid within 90 days or less.

Question

Quizplus · Accepted Answer

Venture capitalists often ask for a hefty ownership stake in a business in exchange for the cash needed to get that business started.

When Seeking Financial Backing from a Venture Capitalist, a Small