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In most cases, the venture capitalist multiple choice:

a) Seeks control of the company.
b) Would prefer to not be a part of the board of directors.
c) Is not involved in developing strategic plans.
d) Expects the management team to run the daily operations.

1 Answer

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Final answer:

Venture capitalists are expected to be involved in strategic planning while d) Expects the management team to run the daily operations.

Step-by-step explanation:

When considering the role of a venture capitalist (VC) in a company, it is best to understand that VCs are private investors who typically take an active role in the companies they invest in. A substantial portion of a firm may be owned by venture capitalists, which permits them to keep close tabs on the management and strategy of the company, thereby reducing information asymmetry issues. In contrast to typical bondholders or shareholders, VCs often have much better information about the company's operations and have the influence to ensure that the firm is well managed.

The correct answer to the question 'In most cases, the venture capitalist:' is therefore d) Expects the management team to run the daily operations. While venture capitalists are indeed closely involved in strategic decisions and may seek to monitor performance, their primary expectation is that the company's management team will handle the everyday operational aspects of the business.

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