Business Studies Multiple Choice Question – 23 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Business Studies

Which ONE of the following statements is true about using venture capital as a source of finance to start up a business?

Select ONE answer only:

  1. Venture capital is often used to raise small sums of money (e.g. up to £10,000)
  2. Venture capital firms often provide expert management support
  3. Venture capital is simple and quick to arrange
  4. Venture capital does not dilute ownership and control
  5. Venture capital firms do not want a relatively quick return

Name one other source of finance for start-up businesses:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 2 – Venture capital is supplied by merchant and specialised commercial banks or venture capital firms. It can be complex and time-consuming to arrange – requiring presentation of an in-depth business plan with detailed financial forecasts. Most venture capitalists are only interested in loans of £50,000 plus, and some of £250,000 plus. Most expect to take a minority shareholding in the business for a set period and to appoint a non-executive director who can provide informed financial and managerial advice and contribute to major decisions.

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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