Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing,

Question

3 years ago

13

Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing,

the firm will most likely:_______.a. pool funds to invest in a business venture. b. give up a share of its ownership. c. borrow funds to be returned on a designated maturity date. d. pay periodic dividends.

Business

1 answer:

lilavasa [31] · Answer 1 · 2022-05-04T16:01:02+03:00

Answer:

The answer is B.

Explanation:

The correct option is B. - give up a share of its ownership. Venture capitalist invest in a start up ventures or small businesses that they believe have high future prospects.

Because venture capitalists are exprienced business wise and have enough money, they tend to make or provide managerial decisions. The business will be in form of partnership, hence, Artificial Intelligence Inc. giving up part of its ownership.

It is not a must venture business pay a periodic dividend but business capitalist share in the profit or loss of the business.