Small business owners interested in venture capital funding should know that venture capitalists ________
A) charge interest rates for balances owed and set monthly minimum repayment requirements
B) fund multiple projects but only with a limited amount of money for each
C) provide funding only for capital expenses such as buildings and equipment
D) look for the potential of a public stock offering before investing in a company
E) do not seek a management position or control of the business
D
Explanation: D) Venture capitalists provide funding with no contractual obligation to pay back the money. Venture capitalists contribute money to a business in return for some form of ownership in the business. To increase the odds of a positive return on their investment, venture capitalists look for businesses with the potential of a public stock offering. The amount of funding they would provide is not arbitrarily limited in amount, nor is it restricted to fund only certain types of business expenses.
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