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Venture Capital MCQs

Why does corporate structure matter when the investment is for equity?

Because equity can only be invested in when the company is structured as a corporation

Because, depending on the structure, the agreement has to be handled differently to be legally binding

Because there are better returns on investment if the company is a corporation as compared with a limited liability corporation

It ultimately doesn't matter as much as the amount invested matters.

Answer

Correct Answer: Because, depending on the structure, the agreement has to be handled differently to be legally binding

Explanation:

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