Which of the following statements is generally true of venture capital (VC)firms?
A)VCs are always silent partners in the start-up company that they finance.
B)VCs always have a majority of directors in the start-up company.
C)VCs generally provide management advice and contacts in addition to capital.
D)VCs are combinations of publicly traded companies.

Question

Quizplus · Accepted Answer

VCs generally provide management advice and contacts in addition to capital. While VCs may take a seat on the Board of Directors, they do not always have a majority of directors or act as silent partners. VCs are not combinations of publicly traded companies.

Which of the Following Statements Is Generally True of Venture