Venture capital is most apt to be the source of funding for which one of the following?

Question

Quizplus · Accepted Answer

Venture capital is most commonly used to fund new, high-risk ventures that are in need of significant capital to get off the ground. These types of ventures typically have a high potential for growth and returns, but also involve a high level of risk. Venture capitalists invest in these types of ventures in exchange for a share of ownership and the potential for significant returns if the venture succeeds.

B) Global expansion for an established firm may be funded by venture capital if it is a high-growth and high-risk venture, but it is less common than funding for new ventures.
A) Bankruptcy reorganization, D) Seasonal production, and E) Daily operations for an established, profitable firm are less likely to be funded by venture capital as they do not involve the high-growth and high-risk characteristics that typically attract venture capital investment.

Venture Capital Is Most Apt to Be the Source of Funding