Which ONE of the following is an advantage to a business of using venture capital?
Select ONE answer:
- It decreases access to additional finance
- The business would not have to produce a business plan
- The business can benefit from expert advice
- The business will pay a lower rate of Corporation Tax
Show the workings to arrive at your answer, and explain and justify your reasons:
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This multiple choice question is suitable for Business Studies KS4 & KS3 classes
The answer is 3:
- It decreases access to additional finance – is not correct because other sources of finance are available.
- The business would not have to produce a business plan – is not correct because any provider of finance would require a business plan.
- The business can benefit from expert advice – is correct because venture capitalists do give an opportunity for additional help and support to a business.
- The business will pay a lower rate of corporation tax – this is incorrect because taxation is not determined by the source of finance.
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