Multiple Choice Questions on Which of the following is are correct about Venture Capital It is used for further capital generatio........... for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

Which of the following is are correct about Venture Capital It is used for further capital generatio...........

Economic Affairs Investment Models
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    Which of the following is/are correct about Venture Capital?

    1. It is used for further capital generation.

    2. It involves a minimum amount of risk relating to the future creation of profits.

    Select the correct answer using the codes given below

    1 only

    Correct Answer

    2 only

    Incorrect Answer

    Both 1 and 2

    Incorrect Answer

    Neither 1 nor 2

    Incorrect Answer
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    Explanation:

    1 only is correct :VCs use the capital they raise to invest in businesses with high growth potential or businesses that have already demonstrated impressive growth.

    Statement 2 is wrong: These investments are generally characterized as very high-risk/high-return opportunities.

    By: Kamal Kashyap
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