What does venture capital mean?
A
A short-term capital provided to industries
B
A long-term start-up capital provided to new entrepreneurs
Correct Answer
C
Funds provided to industries at times of incurring losses
D
Funds provided for replacement and renovation of industries
Explanation
Venture capital is long-term equity investment provided to high-growth, high-risk startups and new entrepreneurs who lack access to traditional bank loans or capital markets. Option (a) is incorrect because venture capital involves a long-term commitment to the business lifecycle rather than short-term financing. The core concept being tested is the nature of risk-based financing for early-stage enterprises.
Financial MarketsVenture Capital and Start-up FundingVenture CapitalStart-up CapitalEntrepreneursLong-term FundingPrivate EquityFinancial Markets