Venture capitalists tend to insist on which form of incorporation for a venture because it offers multiple classes of stock?

Question

Quizplus · Accepted Answer

Venture capitalists prefer C Corporations because they offer multiple classes of stock, which allows for different levels of financial payout and voting rights. This structure facilitates fundraising and provides flexibility for investors to exit the company at various stages.

Venture Capitalists Tend to Insist on Which Form of Incorporation