Choose all the correct options

Question

Which best describes venture capitalists?

Accepted Answer

They are typically passive investors and invest in a company because they like the management team.

Answer

They typically exert control over a firm so it will generate required returns.

Answer

They usually will fire the management team of the entrepreneurial firm and replace with their own management team.

Answer

They will only invest in a firm that will provide a return of 100%+ when they cash out.

Answer

They will structure financing to the liking of the entrepreneur so that the company has a better opportunity to grow.

Which best describes venture capitalists?