La Jolla Corporation, a manufacturer of ethnic foods, contracted in 2011 to purchase 1,000 pounds of a spice mixture at $5.25 per pound, delivery to be made in spring of 2012. By 12/31/11, the price per pound of the spice mixture had risen to $5.95 per pound. In 2011, La Jolla should recognize

Which of the following statements is NOT true regarding venture capitalists?

A) They can provide substantial capital for young companies. B) Firms offer limited partners a number of advantages over investing directly in start-ups themselves as angel investors. C) They use their control to protect their investments, so they may therefore perform a key nurturing and monitoring role for the firm. D) They might invest for strategic objectives in addition to the desire for investment returns.

Funding a new business with credit cards or a personal line of credit ________

A) is the least expensive form of financing B) is subject to a lot of bureaucratic procedures C) involves minimum amount of risk D) is used by very few entrepreneurs E) is a widely available form of financing