Which one of the following statements concerning venture capital financing is correct? Multiple Choice Venture capitalists desire shares of common stock but avoid preferred stock. Venture capital is relatively easy to obtain. Venture capitalists rarely assume active roles in the management of the financed firm. Venture capitalists should have key contacts and financial strength. Venture capital is relatively inexpensive in today's competitive markets. Next Visit question mapQuestion 8 of 25 Total8 of 25 Prev

Respuesta :

Answer: Venture capitalists should have key contacts and financial strength.

Explanation:

Venture Capital investors invest funds into startups, early-stage, or high growth emerging companies so that they can help the company grow and become successful in the future in exchange for some shares in the company.

The aim of this is to be able to sell their shares in the company for a profit when the company grows successful.

To be able to make these companies grow faster, Venture Capitalists need to present them with opportunities to make them grow. These opportunities include having key contacts to make the work of the company easier. Venture Capitalists should also have the necessary financial strength to support the new startups as needed.