Question

When screening prospective new ventures, venture capital firms must consider the nature of the proposed industry Which of the following is not part of the screening of the proposed industry?

a. market attractiveness
b. managerial references
c. potential size
d. technology
e. threat resistance

Answer 1

B

Step-by-step explanation:

Venture capital firms are firms that invest in start up firms.

Venture capital firms use large amount of capital to fund their operations and so must be assured of the market attractiveness of the firm before undertaking the project to ensure profitability.

Potential size of the new venture has to be determined so as to ascertain the financial resources that would be needed.

Threat of resistance can reduce profitability and should also be considered.