Question

Firms classified as being part of the sharing economy and collaborative consumption are still considered too risky to attract substantial venture capital investment. True or False

Answer 1

Answer:

False

Explanation:

• The collaborative consumption of goods and services based on a peer to peer model. As its, a capitalist economy has many active producers, and sellers on one side and passive consumers on the other.  

• The sharing economy is based on the access to the shared goods and services. Poses risks to the venture capital that have a high growth potential.

• As the startups face uncertainty the venture capital can lead to a high level of failure. Example of the merges and acquisitions and joint ventures.