Venture capitalists share in the risks and rewards by financing new ventures.
Answer the following statement true (T) or false (F)
True
Venture capitalists provide initial funding for entrepreneurial ventures. In return for their financial backing, the venture capitalists are entitled to a share of any profits that result. If the venture fails, however, they get nothing. Thus venture capitalists provide financial support for entrepreneurial ideas and share in the risks and rewards.
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A method of valuing a life that estimates how much money it takes to get the typical person to bear an additional risk of death is called the
A) lost-income approach. B) compensating differential approach. C) daredevil approach. D) price-is-right approach.
A shift in the supply curve of bicycles resulting from higher steel prices will lead to: a. higher prices of bicycles
b. lower prices of bicycles. c. a shift in the demand curve for bicycles. d. a larger output of bicycles.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises and GDP Price Index rises. b. The real risk-free interest rate falls and GDP Price Index falls. c. The real risk-free interest rate rises and GDP Price Index falls. d. The real risk-free interest rate and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.