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Venture Capital MCQs

Why do venture capitalists tend to focus on riskier investments?

They are not regulated and can take on risky investment with a potential for huge losses.

They can receive larger tax write offs since they fail more often than succeed.

There are too many people already investing in low risk industries.

The venture capital model is to invest in early stage companies with large upside potential.

Answer

Correct Answer: The venture capital model is to invest in early stage companies with large upside potential.

Explanation:

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