Venture capital is best described as a subdivision of which kind of investing?
APrivate equity
BCommodity trading
CIndex funds
DGovernment bonds
Answer & Solution
Correct answer: A. Private equity
Venture capital is a subdivision of private equity in which outside investors fund small startups with high long-term growth potential.
Keep practising Startup Company
Browse all Startup Company questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In prize draw crowdfunding, what does a donor receive?Why can scalability make a startup attractive to investors?Peer-to-peer lending, also called crowdlending, belongs to which crowdfunding type?In equity crowdfunding, what does a backer receive in exchange for the money pledged?Title II of the US JOBS Act let startups publicly advertise securities provided that only After the US Securities Act of 1933, startup investing wasY Combinator's 2005 accelerator paired seed funding withThe mythical unicorn was chosen as a name for billion-dollar startups to represent their