Money invested in small firms that have the potential to become very successful is called
A) venture capital.
B) small business loans.
C) lines of credit.
D) angel credit.

Question

​Money invested in small firms that have the potential to become very successful is called
A) ​venture capital.
B) ​small business loans.
C) ​lines of credit.
D) ​angel credit.

Quizplus · Accepted Answer

Venture capital is typically invested in small firms that have the potential to become very successful. This type of financing involves investing in companies that have a high risk, but also have the potential for significant returns. Venture capitalists provide funds for start-ups or young businesses that have innovative products, services or approaches. Small business loans, lines of credit, and angel credit are not specific to firms with high growth potential.

​Money Invested in Small Firms That Have the Potential to Become

Money Invested in Small Firms That Have the Potential to Become