Funds lent to start-up firms in return for shares of the profit if the firms succeed are called
A)retained earnings.
B)time deposits.
C)venture capital.
D)transfer payments.

Question

Quizplus · Accepted Answer

Venture capital refers to funds provided to startups or small businesses with high growth potential in exchange for equity, or partial ownership, in the companies. This type of financing is often sought by new companies that do not have access to capital markets.

Funds Lent to Start-Up Firms in Return for Shares of the Profit