Question

Trevon is opening a cookie bakery in his small town. He is saving the funds that he needs to open hisbusiness and is considering crowdsourcing the last $10,000. He has already saved $60,000 to buy theneeded equipment and get through a few slow months. A friend suggests that he find a venturecapitalist. Is this a good suggestion?
(1 point)
No, venture capitalists are only for tech businesses.
No, venture capitalists tend to invest in higher risk businesses.
Yes, they will likely want to invest much more than the $10,000 he needs.
Yes, this is exactly the kind of innovated business venture capitalists prefer.
A)
What happens if a venture capitalist invests in a company that does not end up making much of aprofit?
(1 point)
The venture capitalist loses the money invested.
The venture capitalist can sue the company in court.
The venture capitalist can take over and run the company.
The venture capitalist will provide more funds to save the company.

Answer 1

Q1: Yes, they will likely want to invest much more than the $10,000 he needs.

Q2: The venture capitalist loses the money invested.