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Investors look for which of the following when reviewing the experience of the management team of a new venture?

A) Assets that can be used as collateral for the loan/investment

B) Experience, talent, and integrity

C) Plans for keeping the management team in place

D) A hiring strategy that has the customer clearly in focus

User Wallebot
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Final answer:

The correct answer is B. Investors look for experience, talent, and integrity in the management team of a new venture to ensure its success.

Step-by-step explanation:

When investors review the experience of the management team of a new venture, they typically look for experience, talent, and integrity. This is important because an experienced and talented management team with integrity is more likely to successfully lead the venture towards profitability. Investors also consider the plans for keeping the management team in place as a sign of stability and commitment. It is not necessary for the management team to have assets that can be used as collateral for the loan/investment. Additionally, while having a hiring strategy that focuses on the customer is important, it is not directly related to the experience of the management team.

Investors generally look for experience, talent, and integrity when reviewing the management team of a new venture. While assets for collateral and plans for management retention are important, what truly signifies a management team's potential value to a startup is their capability, previous successes, and ethical conduct. As a firm becomes established and its financial information becomes more transparent, the need for personal knowledge of the management decreases; however, in the early stages, angel investors and venture capitalists will scrutinize the managerial team closely and often provide guidance to mitigate the high risks associated with startup investments.

User Matthew
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