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Venture Capital MCQs

What does an exit effectively do?

It allows the investor to put more money into a company to get a better return.

It makes everyone involved rich.

It determines the value of the company at the given point.

It allows the venture capitalist to sell their equity in some fashion, either on the stock market, or to the owners, or to the new owners.

Answer

Correct Answer: It allows the venture capitalist to sell their equity in some fashion, either on the stock market, or to the owners, or to the new owners.

Explanation:

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