Which source of financing has the greatest influence to force a business owner to sell the enterprise to a competitor and collect a high financial return?

A) banks
B) family
C) angel investors
D) peer-to-peer lenders
E) venture capitalists

Answer: E
Explanation: E) Because venture capitalists get an ownership stake in the businesses they support—and sometimes a majority stake—they have a strong influence on the decision to sell a successful business to profit from their investment.

Business

You might also like to view...

Which of the following is an incorrect statement regarding the corporate form of business organization?

A) The dominant form of business organization in the United States is the corporation. B) A corporation is a legal entity created by federal law. C) A corporation raises capital by issuing stock to investors. D) Although the corporation may have many owners, it is legally treated as a single person.

Business

Outbound transportation costs per unit tend to be

A) about the same as inbound costs. B) higher than inbound costs. C) lower than inbound costs. D) neither higher or lower than inbound costs.

Business