Which of the following is NOT a reason why an investor would choose to invest in new and growing firms as a limited partner in a venture capital firm rather than making those investments directly by themselves?
A) The investor will have a direct say in how the companies that the venture capital firm funds will be run.
B) A venture capital firm generally has a wide range of expertise among its general partners.
C) Venture capital firms use their control of the companies they invest in to protect those investments.
D) The investments of a venture capital firm are more diversified than the investments of a single individual.
Correct Answer:
Verified
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