Although there is no limit on the amount of stock it can buy, a typical venture capital firm will purchase less than ________ percent of the ownership in a small firm.
A)21
B)50
C)70
D)80

Question

Quizplus · Accepted Answer

A typical venture capital firm will purchase less than 50% of the ownership in a small firm. This is because they usually invest in early-stage companies and want to leave enough ownership for the founders to stay motivated and committed to the business. Buying too much ownership may also limit the founders' ability to raise additional funding in the future.

Although There Is No Limit on the Amount of Stock