alleryStart learning →What does a VC receive for funding a young firm?
AA guaranteed repayment schedule
BA fixed rate of interest on the sum
CAn equity stake in the business
DA charge over the firm's assets
Answer & Solution
Correct answer: C. An equity stake in the business
Venture capital buys ownership, so the investor's return depends on the growth and profitability of the business rather than on contractual interest.
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