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Venture Capital MCQs

What protection do investors in a venture capital fund have?

They are guaranteed at least a 3% return on the investment.

They are guaranteed to double their money within one year.

There is no protection. They are not guaranteed a return on their investment, and it is made very clear that investing in new ventures is risky.

There is no protection. They are told that they may lose their money, but most likely, they will make a lot of money.

Answer

Correct Answer: There is no protection. They are not guaranteed a return on their investment, and it is made very clear that investing in new ventures is risky.

Explanation:

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