A ________ is a specialized firm that finances young,start-up companies.

Question

Quizplus · Accepted Answer

A venture capital firm is a specialized company that provides capital to start-up companies with high growth potential. They invest in these companies in exchange for an ownership stake or equity. This type of financing is risky as it involves investing in businesses without a proven track record, but it can also yield high returns if the company succeeds. Therefore, venture capital firms typically look for businesses with innovative ideas and a strong potential for growth in order to achieve high returns on their investment.

A ________ Is a Specialized Firm That Finances Young,start-Up Companies