One way the venture capital firm avoids the free-rider problem is by
A) prohibiting the sale of equity in the firm to anyone except the venture capital firm.
B) prohibiting members from serving on the board of directors.
C) prohibiting the borrowing firm from replacing management.
D) requiring collateral equal to the value of the borrowed funds.
A
Economics
You might also like to view...
In the absence of a financial system, the two-period model without taxes predicts that
A) consumption is more volatile that output. B) consumption is as volatile as output. C) consumption is less volatile than output. D) We do not know.
Economics
The consumer's income is $800.According to the above figure, what is the consumer's marginal rate of substitution in equilibrium?
A. 2.5 B. 1.5 C. 2 D. 0.8 E. unable to tell from information given
Economics